(Appendix 6B) Inventory Costing Methods: Periodic LIFO Bordeaux Company has the following information related to purchases and sales of one of its inventory items: Description Units Purchased at Cost 150 units @ $8 = $1,200 200 units @ $12 = $2,400 Date June 1 Beginning Inventory 9 Purchase 1 Sale 1 Purchase 2 Sale 2 Assume that Bordeaux uses a periodic inventory system. 14 22 29 Cost of ending inventory 250 units @ $14 = $3,500 $ Units Sold at Retail 300 units @ $25 Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method. Cost of goods sold 225 units @ $25
(Appendix 6B) Inventory Costing Methods: Periodic LIFO Bordeaux Company has the following information related to purchases and sales of one of its inventory items: Description Units Purchased at Cost 150 units @ $8 = $1,200 200 units @ $12 = $2,400 Date June 1 Beginning Inventory 9 Purchase 1 Sale 1 Purchase 2 Sale 2 Assume that Bordeaux uses a periodic inventory system. 14 22 29 Cost of ending inventory 250 units @ $14 = $3,500 $ Units Sold at Retail 300 units @ $25 Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method. Cost of goods sold 225 units @ $25
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:(Appendix 6B) Inventory Costing Methods: Periodic LIFO
Bordeaux Company has the following information related to purchases and sales of one of its inventory items:
Description
Units Purchased at Cost
Units Sold at Retail
Date
June 1 Beginning Inventory
9
Purchase 1
14
22
Sale 1
Purchase 2
150 units @ $8 = $1,200
200 units @ $12 = $2,400
250 units @ $14 = $3,500
29 Sale 2
Assume that Bordeaux uses a periodic inventory system.
$
300 units @ $25
225 units @ $25
Required:
Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.
Cost of goods sold
Cost of ending inventory
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