Ford Co Uses a Periodic Inventory System Instructions
Compute the Ending Inventory at May 31 and Cost

Essay

Ford Co. uses a periodic inventory system. Its records show the following for the month of May in which 75 units were sold. $\begin{array}{llccc}&& \underline{\text { Units}}& \underline{\text { Unit Cost }}& \underline{\text { Total Cost }}\\\text { May}& 1 \text { Inventory } & 35 & \$ 8&\$280 \\&15 \text { Purchases } & 30 & 12&360 \\&24 \text { Purchases } & \underline{40} & 13 & \underline{520}\\&\text { Totals }& \underline{105}&& \underline{\$1.160}\end{array}$ Instructions
Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method.