Question

Dec. 1	Beginning merchandise inventory	20	tires @	$66	each
11	Purchase	8	tires @	$73	each
23	Sale	15	tires @	$87	each
26	Purchase	13	tires @	$84	each
29	Sale	15	tires @	$87	each

Requirement 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method.

Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological​ order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual​ record, calculate the quantity and total cost of merchandise inventory​ purchased, sold, and on hand at the end of the period. ​(Enter the oldest inventory layers​ first.)

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Dec. 1
11
23
26
29
Totals

Answer 1

Date Dec. 1 8 T LIFO - Perpetual inventory method Purchases Cost of goods sold Inventory on hand Quantity Unit cost Total cost Quantity Unit cost Total cost Quantity Unit cost Total cost 201 $ 66 $1,320 $ 73 S584 S66 S 1,320 8 S 73|| $ 584 $ 731 S584 $ 66 $ 858 7 S66 S 462 S 84 S 1.092 $ 66 $ 858 S 84 S 1,092 S 84 S 1,092 $66 $726 20 S66 S 132 1 T 30 $2,270 111 $ 726 Totals Cost of goods sold = $2,270 Gross profit = Sales - Cost of goods sold Gross profit = (30 x$87) - $2,270 Gross profit = $2,610 - $2,270 Gross profit = $340