Question

[The following information applies to the questions displayed below.) A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 270 units. Ending inventory at January 31 totals 130 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 240 60 100 Unit Cont $ 2.20 2.40 2.54 Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. Periodic LIFO Cost of Goods Sold Cost of Goods Available for Sale # of Cost of Goods Available for units unit Sale 240 $ 2.20 $ 528 Cost per Cost per # of units sold Inventory Balance # of units Cost per Ending in ending unit Inventory Inventory Cost of Goods Sold unit Beg. Inventory Purchases: January 9 January 25 Total 60 144 2.40 2.54 100 400 254 926 $ 0 $ 0 o

Answer 1

Answer:

Inventory balance Unit Price Total 130 2.2 LIFO-Periodic Cost of goods sold Unit Price Total 110 2.2 242) 0 60 2.4 144 100 2.54 254 Begining and purchase Date Unit Price Total Beg, Inventor 240 2.2 528 Purchase January 9 60 2.4 144 January 25 100 2.54 254 286 0 0 2.4 2.54 0 0 Total 400 926 270 2.54 640 130 286