Cost of Goods Available for Sale COGS - Periodic LIFO Ending Inventory - Periodic LIFO Cost Cost Cost Cost of Goods Available # of units Cost of Goods Sold # of units in ending inventory Ending Inventory # of units per unit per unit per unit sold Beginning Inventory 20,000 $ 25 $ 500,000 $ 25 $ 25 Purchases 80,000 30 2,400,000 $ 30 $ 30 Total 100,000 $ 2,900,000
Cost of Goods Available for Sale COGS - Periodic LIFO Ending Inventory - Periodic LIFO Cost Cost Cost Cost of Goods Available # of units Cost of Goods Sold # of units in ending inventory Ending Inventory # of units per unit per unit per unit sold Beginning Inventory 20,000 $ 25 $ 500,000 $ 25 $ 25 Purchases 80,000 30 2,400,000 $ 30 $ 30 Total 100,000 $ 2,900,000
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section20.2: Determining The Cost Of Merchandise Inventory
Problem 1OYO
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Question
Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $500,000 (20,000 units at $25 each). During 2021, 80,000 units were purchased, all at the same price of $30 per unit. 85,000 units were sold during 2021.
Calculate the December 31, 2021, ending inventory and cost of goods sold for 2021 based on a periodic inventory system.
![Cost of Goods Available for Sale
COGS - Periodic LIFO
Ending Inventory - Periodic LIFO
Cost
Cost
Cost of Goods
Cost
Cost of Goods
Available
# of units
sold
# of units in ending
inventory
Ending
Inventory
# of units
per
unit
per
unit
per
unit
Sold
Beginning Inventory
20,000 $ 25
$
500,000
$ 25
$ 25
Purchases
80,000
30
2,400,000
$ 30
$ 30
Total
100,000
2,900,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35be7484-4095-41dd-86db-30e7d12bb218%2F7ae71b9b-046f-41d9-a758-30a7058933a2%2Fnkdrgdl_processed.png&w=3840&q=75)
Transcribed Image Text:Cost of Goods Available for Sale
COGS - Periodic LIFO
Ending Inventory - Periodic LIFO
Cost
Cost
Cost of Goods
Cost
Cost of Goods
Available
# of units
sold
# of units in ending
inventory
Ending
Inventory
# of units
per
unit
per
unit
per
unit
Sold
Beginning Inventory
20,000 $ 25
$
500,000
$ 25
$ 25
Purchases
80,000
30
2,400,000
$ 30
$ 30
Total
100,000
2,900,000
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