Question

eBook Calculator Cornerstone Exercise 6-31 (Algorithmic) Inventory Costing Methods: Periodic LIFO (Appendix 6B) Bordeaux Company has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost Units Sold at Retail June 1 Beginning Inventory 150 units @ $7 - $1,050 9 Purchase 1 200 units @ $12 - $2,400 14 Sale 1 300 units @ $25 22 Purchase 2 250 units @ $14 = $3,500 29 Sale 2 225 units $25 Assume that Bordeaux uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method. Cost of goods sold Cost of ending inventory $

Answer 1

Answer

• Cost of Goods Sold = $ 6425
• Cost of ending inventory = $ 525

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	150	$                   7.00	$                        1,050.00	75	$                 7.00	$                     525.00	75	$                   7.00	$                525.00
Purchases:
09-Jun	200	$                12.00	$                        2,400.00	200	$               12.00	$                 2,400.00	0	$                 12.00	$                         -
22-Jun	250	$                14.00	$                        3,500.00	250	$               14.00	$                 3,500.00	0	$                 14.00	$                         -
TOTAL	600		$                        6,950.00	525		$                 6,425.00	75		$                525.00