Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company began 2021 with inventory of 4,500 units of its only product. The beginning inventory balance of $64,000 consisted of the following layers: 2,000 units at $12 per unit = $ 24,000 2,500 units at $16 per unit = 40,000 Beginning inventory $ 64,000 During the three years 2021–2023 the cost of inventory remained constant at $18 per unit. Unit purchases and sales during these years were as follows: Purchases Sales 2021 10,000 11,000 2022 13,000 14,500 2023 12,000 13,000 Required: 1. Calculate cost of goods sold for 2021, 2022, and 2023.
Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company began 2021 with inventory of 4,500 units of its only product. The beginning inventory balance of $64,000 consisted of the following layers: 2,000 units at $12 per unit = $ 24,000 2,500 units at $16 per unit = 40,000 Beginning inventory $ 64,000 During the three years 2021–2023 the cost of inventory remained constant at $18 per unit. Unit purchases and sales during these years were as follows: Purchases Sales 2021 10,000 11,000 2022 13,000 14,500 2023 12,000 13,000 Required: 1. Calculate cost of goods sold for 2021, 2022, and 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company began 2021 with inventory of 4,500 units of its only product. The beginning inventory balance of $64,000 consisted of the following layers:
| 2,000 units at $12 per unit | = | $ | 24,000 |
| 2,500 units at $16 per unit | = | 40,000 | |
| Beginning inventory | $ | 64,000 | |
During the three years 2021–2023 the cost of inventory remained constant at $18 per unit. Unit purchases and sales during these years were as follows:
| Purchases | Sales | |
| 2021 | 10,000 | 11,000 |
| 2022 | 13,000 | 14,500 |
| 2023 | 12,000 | 13,000 |
Required:
1. Calculate cost of goods sold for 2021, 2022, and 2023.
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