A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 440 units. Ending inventory at January 31 totals 170 units. Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. Perpetual LIFO:Cost of Goods Sold# ofGoods purchasedInventory Balance# ofunitsCost perunitCost per Cost of GoodsunitCost perInventoryBalanceDateunits# of unitsSoldunitsoldJanuary 1400 @$ 3.90$1,560January 990 @$4.10400 @$3.90 =1,56090 @$ 4.10 =369$1,929January 25120 @$4.20400 @3.90$1,56090 @$ 4.10 =369120 @$ 4.20 =504$2,433January 26120 @2$4.20 =2$504@2$3.90 =90 @$4.10 =369$ 4.10 =@$ 3.90@$ 4.20Totals2$873

Name: A company reports the following beginning inventory and two purchases
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Description: A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 440 units. Ending inventory at January 31 totals 170 units. Assume the perpetual inventory system is used. Determine the

LIFO is the last in first out inventory valuation method which says that inventory which is…

Answered: A company reports the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 440 units. Ending inventory at January 31 totals 170 units. Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO.

Perpetual LIFO:
Cost of Goods Sold
# of
Goods purchased
Inventory Balance
# of
units
Cost per
unit
Cost per Cost of Goods
unit
Cost per
Inventory
Balance
Date
units
# of units
Sold
unit
sold
January 1
400 @
$ 3.90
$
1,560
January 9
90 @
$
4.10
400 @
$
3.90 =
1,560
90 @
$ 4.10 =
369
$
1,929
January 25
120 @
$
4.20
400 @
3.90
$
1,560
90 @
$ 4.10 =
369
120 @
$ 4.20 =
504
$
2,433
January 26
120 @
2$
4.20 =
2$
504
@
2$
3.90 =
90 @
$
4.10 =
369
$ 4.10 =
@
$ 3.90
@
$ 4.20
Totals
2$
873

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