Question

Lisa Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Lisa Company uses the perpetual inventory system. Purchases Sales Units Unit Cost Units Selling Price/Unit 3/1 Beginning inventory $38 3/3 Purchase $50 3/4 Sales $80 3/10 Purchase $50 3/16 Sales $90 $95 3/19 Sales 3/25 Sales $90 3/30 Purchase 35 $65 Using the FIFO assumption, calculate the amount charged to cost of goods sold for March. Cost of goods sold $ eTextbook and Media

Answer 1

Cost of goods sold using FIFO:

= 105 X $38 + 65 X $50 + 105 X $50

= $12,490

Value of ending inventory using LIFO:

= 90 X $38 + 35 X $65

= $5,695