Question

LIFO:

Required information Exercise 6-5A Calculate inventory amounts when costs are declining (L06-3) [The following information applies to the questions displayed below.] During the year, Trombley Incorporated has the following inventory transactions. Number of Units Unit Cost $ 31 Date Transaction Jan. 1 Beginning inventory Mar. 4 Purchase Jun. 9 Purchase Nov. 11 Purchase 34 Total Cost $ 899 1,020 1,131 1,053 $4,103 39 For the entire year, the company sells 110 units of inventory for $39 each. Exercise 6-5A Part 2 2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per Cost of Goods Available for Sale # of units Cost per Cost of Goods Sold # of units Cost Ending per unit Inventory unit unit Beginning Inventory Purchases: Mar 04 Jun 09 Nov 11 Total

Answer 1

Answer

• Requirement 2

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	29	$                31.00	$                            899.00	0	$               31.00	$                              -	29	$                 31.00	$                899.00
Purchases:
04-Mar	34	$                30.00	$                        1,020.00	32	$               30.00	$                     960.00	2	$                 30.00	$                  60.00
09-Jun	39	$                29.00	$                        1,131.00	39	$               29.00	$                 1,131.00	0	$                 29.00	$                         -
11-Nov	39	$                27.00	$                        1,053.00	39	$               27.00	$                 1,053.00	0	$                 27.00	$                         -
TOTAL	141		$                        4,103.00	110		$                 3,144.00	31		$                959.00