Question

Carpenter Corporation is a United Stated merchandising business. The corporation extensively uses scan technology in a perpetual inventory system, and values inventory using the LIFO cost flow assumption. Using the following information, what is the Cost of Merchandise Sold on the Income Statement for the month ended September 30?

Sep. 1         Inventory 26 units at $21

         4        Sold 10 units

       10        Purchased 35 units at $25

       17        Sold 24 units

      30        Purchased 17 units at $30

Answer 1

Ending inventory = $1121 Perpetual : LIFO ( Last In First Out) Purchases Inventory on Hand Cost of Goods Sold Unit Cost total cost Qty Qty Unit Cost total Cost Qty 21 Date Sep-01 Sep-04 Sep-10 1 875 10 21 210 35 25 35 8751 Sep-17 24 25 600 Unit Cost total Cost 26 546 16|| 21 336 16 336 25 16 336 275 336 25 275 510 1121 Sep-30 510 21 30/ Dec-31 Balance Cost of Goods Sold 810 Answer: Cost of Merchandise Sold 810