Question

The Reuschel Company began 2018 with inventory of 26,000 units at a cost of $9 per unit. During 2018, 66,000 units were purchased for $10.25 each. Sales for the year totaled 78,000 units leaving 14,000 units on hand at the end of 2018. Reuschel uses a periodic inventory system and the LIFO inventory cost method. Required: 1. Calculate cost of goods sold for 2018 2. Calculate the effect of the LIFO on the income. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate cost of goods sold for 2018. Cost of goods sold

Answer 1

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Answers are highlighted in yelllow: Solution: LIFO Goods avaiable for sale Cost of Goods Sold Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 26000 $ Date Beg. 234000 12000 $ 66000 $ 108000 9.00 9.00 66000 $ 10.25 676500 10.25 676500 $ $ Total 910500 784500 92000 78000 1) Cost of goods sold 784500 2) Options in drop down for part 2 is missing. Can be slightly different: 15000 (12000) (10.25-9) The effect of the LIFO layer liquidation is to Income by Increase