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 SaleCOGS - Periodic LIFOEnding Inventory - Periodic LIFOCostCostCost of GoodsCostCost of GoodsAvailable# of unitssold# of units in endinginventoryEndingInventory# of unitsperunitperunitperunitSoldBeginning Inventory20,000 $ 25$500,000$ 25$ 25Purchases80,000302,400,000$ 30$ 30Total100,0002,900,000

Name: Esquire Inc. uses the LIFO method to report its inventory. Inventory a
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Description: 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. Cal

LIFO- Last in first out Inventory which is last entered should be first out for sale. Sale for 85000…

Answered: Cost of Goods Available for Sale COGS -…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

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