Question

Evans, Inc. had the following balances and transactions during 2017: What is the amount of the company's Merchandise Inventory, as disclosed in the December 31, 2017 balance sheet, using the periodic LIFO inventory costing method? Supporting Materials Beginning Merchandise Inventory March 10 June 10 October 30 30 units at $70 Sold 27 units Purchased 90 units at $80 Sold 85 units
what is the amount of the companys merchandise inventory as disclosed in the december 31,2017 balance sheet, using the periodic LIFO inventory costing method ?

Answer 1

Answer

• Merchandise inventory as disclosed on balance sheet using LIP periodic inventory costing method
  = $ 560 Answer
• Working

Total units sold = 27 + 85 = 112 units

LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	30	$                70.00	$                        2,100.00	22 [112 – 90]	$               70.00	$                 1,540.00	8	$                 70.00	$                560.00
Purchases:
10-Jun	90	$                80.00	$                        7,200.00	90	$               80.00	$                 7,200.00	0	$                 80.00	$                         -
TOTAL	120		$                        9,300.00	112		$                 8,740.00	8		$                560.00