Question

The periodic inventory records of Flexon Prosthetics indicate the following for the month of July: EEE(Click the icon to view the inventory records.) At July 31, Flexon counts nine units of inventory on hand. Compute ending merchandise inventory and cost of goods sold for Flexon using the LIFO inventory costing method. LIFO Cost i Data Table Ending Merchandise Inventory Cost of Goods Sold 18 units @ $55 each Jul. 1 Beginning merchandise inventory @ $ 60 each 8 Purchase 15 units 12 units @ $ 61 each 15 Purchase @ $ 62 each 26 Purchase 11 units Print Done

Answer 1

Answer- LIFO Cost-

Ending Merchandise Inventory =$558.

Cost of goods sold =$2746.

Explanation-

LIFO METHOD
	Goods purchased		Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Jul-01						18	55	990
Jul-08	15	60				18	55	990
						15	60	900
Jul-15	12	61				18	55	990
						15	60	900
						12	61	732
Jul-26	11	62				18	55	990
						15	60	900
						12	61	732
						11	62	682
Dec-31			18	55	990	9	62	558
			15	60	900
			12	61	732
			2	62	124
Totals			47		2746	9		558