Question

Beginning inventory 500 units @$2.40 $1.200 4/20 purchase 400 units $2.50 $1.000 $2,200 900
20” units on hand as of 4/30. LIFO?

Answer 1

Answer

• Ending units as per you ON HAND = 20 units. This means that 880 units are sold from available 900 units.
• Working

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	500	$                   2.40	$                        1,200.00	480	$           2.40	$           1,152.00	20	$           2.40	$                  48.00
Purchases:	0	$                       -	$                                     -
20-Apr	400	$                   2.50	$                        1,000.00	400	$           2.50	$           1,000.00	0	$           2.50	$                         -
TOTAL	900		$                        2,200.00	880		$           2,152.00	20		$                  48.00

• Cost of ending Inventory = $ 48
• Cost of Goods Sold = $ 2152