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Problem 1

Matlock Corporation sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2012.

Quantities

Unit Price

Date Purchased Sold Balance of Purchase

January 11 400 $3.75

January 24 1,300 1,700 $3.90

February 8 300 1,400

March 16 560 840

June 11 600 1,440 $4.10

Instructions

(a) Compute the ending inventory at June 30 under the perpetual LIFO inventory pricing method on the attached form.

(b) Compute the cost of goods sold for the first six months under the periodic FIFO inventory pricing method.

Problem 2

Aber Company manufactures one product. On December 31, 2015, Aber adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $270,000. Inventory data are as follows:

Inventory at Price index

Year year-end prices (base year 2009)

2016 $378,000 1.05

2017 552,000 1.15

2018 575,000 1.25

Instructions

Compute the inventory at December 31, 2016, 2017, and 2018, using the dollar-value LIFO method for each year on the attached form.

$ Value LIFO Cost
	End. Inv.		End. Inv.				End. Inv.
	@ Cur.	Price	@ Base		Layers	Price	@ LIFO
Year	Cost	Index	Cost	Layers	@ Base	Index	Cost

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