Question

CALCU Brief Exercise 196 x Your answer is incorrect. Try again. Blue Spruce Company's inventory records show the following data for the month of September: Inventory, September 1 Purchases: September 8 September 18 Units Unit Cost 80 $2.90 450 3.50 300 3.90 A physical inventory on September 30 shows 140 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses LIFO inventory costing and a periodic inventory system. Ending inventory Cost of goods sold LINK TO TEXT

Answer 1

Blue Spruce Company LIFO Method: Activity 01-Sep Beginning 08-Sep Purchase 18-Sep Purchase No of units Unit cost Total Cost Date 80 $ 450 $ 300 $ 2.90 $ 3.50 1,575.00 3.90 1,170.00 232,00 $2,977.00 Cost of goods available for sale Less Ending Inventory: 80 units @$2.90 60 Units @ $3.50 232.00 $ 210.00 442.00 $2,535.00 Cost of goods sold Cost of goods available for sale Ending inventory Note LIFO Method Assumes that Goods which are purchased last will be sold First, So in Ending inventory units will be there which are purchased First