Question

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 300 units. Ending inventory at January 31 totals 130 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 270 60 100 Unit Coat $ 2.50 2.70 2.84 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Inventory Balance Date #of units Cost per Cost of Goods Sold # of units Cost per Cost of Goods unit sold Sold unit # of units Cost per unit Inventory Balance January 1 January 9 January 25 January 20

Answer 1

Perpetual LIFO:
	Goods purchased		Cost of Goods Sold			Inventory Balance
Date	# of units	Cost per unit	# of units	Cost per unit	Cost of Goods Sold	# of units	Cost per unit	Inventory Balance
January 1						270	2.50	675
January 9	60	2.70				270	2.50	675
						60	2.70	162
								837
January 25	100	2.84				270	2.50	675
						60	2.70	162
						100	2.84	284
								1121
January 26			100	2.84	284	130	2.50	325
			60	2.70	162	0	2.70	0
			140	2.50	350	0	2.84	0
Totals					796			325