Shown below is activity for one of the products of Denver Office Equipment:
January 1 balance, 500 units @ $55 $27,500
Purchases:
January 10: 500 units @ $60
January 20: 1,000 units @ $63
Sales:
January 12: 800 units
January 28: 750 units
Required:
Compute the January 31 cost of ending inventory and cost of goods sold for January, assuming Denver uses LIFO and a periodic inventory system.
|
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 |
$ 55.00 |
$ 27,500.00 |
50 |
$ 55.00 |
$ 2,750.00 |
450 |
$ 55.00 |
$ 24,750.00 |
|
Purchases: |
|||||||||
|
10-Jan |
500 |
$ 60.00 |
$ 30,000.00 |
500 |
$ 60.00 |
$ 30,000.00 |
0 |
$ 60.00 |
$ - |
|
20-Jan |
1000 |
$ 63.00 |
$ 63,000.00 |
1000 |
$ 63.00 |
$ 63,000.00 |
0 |
$ 63.00 |
$ - |
|
TOTAL |
2000 |
$ 120,500.00 |
1550 |
$ 95,750.00 |
450 |
$ 24,750.00 |
|||
Shown below is activity for one of the products of Denver Office Equipment: