A company had the following purchases and sales during its first year of operations: March: April: August: December: Beginning Inventory. 100 units at $50 Purchases 150 units at $52 125 units at $54 110 units at $55 90 units at $56 Sales 125 units 100 units 140 units 160 units On December 31, there were 50 units remaining in ending inventory. (Assume all sales were made on the last day of the month.) 1. Using the perpetual LIFO inventory costing method, what is the value of cost of goods sold? 2. Using the perpetual LIFO inventory costing method, what is the value of ending inventory?
A company had the following purchases and sales during its first year of operations: March: April: August: December: Beginning Inventory. 100 units at $50 Purchases 150 units at $52 125 units at $54 110 units at $55 90 units at $56 Sales 125 units 100 units 140 units 160 units On December 31, there were 50 units remaining in ending inventory. (Assume all sales were made on the last day of the month.) 1. Using the perpetual LIFO inventory costing method, what is the value of cost of goods sold? 2. Using the perpetual LIFO inventory costing method, what is the value of ending inventory?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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No table or inventory record needed. Just the math calculations and explained
Transcribed Image Text:A company had the following purchases and sales during its first year of operations:
March:
April:
August:
December:
Beginning Inventory.
100 units at $50
Purchases
150 units at $52
125 units at $54
110 units at $55
90 units at $56
Sales
125 units
100 units
140 units
160 units
On December 31, there were 50 units remaining in ending inventory. (Assume all sales
were made on the last day of the month.)
1. Using the perpetual LIFO inventory costing method, what is the value of cost of goods
sold?
2. Using the perpetual LIFO inventory costing method, what is the value of ending
inventory?
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