Question

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 430 units. Ending inventory at January 31 totals 170 units.

Required:
Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method.

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 430 units. Ending inventory at January 31 totals 170 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 390 90 120 Unit Cost $3.80 4.00 4.10 Required: Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance # of Cost per Cost of Goods Available for # of units sold Cost per unit Cost of Goods Sold units 390 unit 3.80 # of units in ending inventory 390 Cost per unit $ 3.80 Sale 1,482 Ending Inventory $ 1,482 $ $ Beg. Inventory Purchases: January 9 January 25 Total 90 1201 600 4.00 4. 10 360 4 92 2,334 90 120 600 4.00 4.10 $ 0 $ $ 492 2,334

Answer 1

Answer:

Periodic LIFO Cost of Goods Available for Sales Cost of Goods # of Units Cost per Unit Available for Sales 390 $3.80 $1,482 Cost of Goods Sold Cost of # of Units Cost per sold unit Goods Sold 220 $3.80 $836 Inventory Balance #of units in Cost per Ending ending unit Inventory inventory 170 $3.80 $646 Beg. Inventory Purchases: January. 9 January. 25 Total $4.00 $4.10 $360 $492 $2,334 120 600 90 120 430 $4.00 $4.10 $360 $492 $1,688 170 $646