Periodic vs Perpetual – LIFO

  • Creator
    Topic
  • February 11, 2015 at 9:24 pm #191982
    G
    Member

    Hello,

    Does anyone know WHY you can use the below formula, which is listed under the periodic method (in Becker) to obtain COGS, to get the correct ending inventory for LIFO under a perpetual system? I figured you would use this formula to get the EI for the periodic method. Any assistance is appreciated.

    BI

    + Purchases

    COGA

    – EI

    COGS

    FAR - 78
    AUD - 90
    BEC - 87
    REG - TBD

Viewing 3 replies - 1 through 3 (of 3 total)
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  • February 12, 2015 at 2:23 pm #646567
    G
    Member

    Never mind. I figured it out. I was just using the wrong figures.

    FAR - 78
    AUD - 90
    BEC - 87
    REG - TBD

    February 12, 2015 at 2:36 pm #646568
    Determined CPA
    Participant

    I wasn't really sure what your question was asking, sorry.

    A - 75
    B - 78 God is good.
    F - 77 Answered prayers.
    R - 84! Done!!

    Paperwork sent - waiting for license!!
    Still on a cloud and in shock. Through God, all things will happen.

    February 12, 2015 at 2:52 pm #646569
    G
    Member

    If you don't use Becker it may have been a little confusing. I actually thought the formula was only for the periodic method. I hadn't used it in a while with anything other than CPA study and Becker doesn't go into any real detailed examples. No biggie. I was just overthinking it and not taking into account how LIFO really flows when performing the calculations.

    FAR - 78
    AUD - 90
    BEC - 87
    REG - TBD

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