Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $600,000 (24,000 units at $25 each). During 2021, 88,000 units were purchased, all at the same price of $30 per unit. 89,000 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 Cost of Goods Available Cost of Goods Sold # of units in ending inventory Ending Inventory # of units # of units sold per unit per unit per unit Beginning Inventory 24,000 $ 25 600,000 $ 25 $ $ 25 $ Purchases 88,000 30 2,640,000 $ 30 $ 30 Total 112,000 $ 3,240,000
Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $600,000 (24,000 units at $25 each). During 2021, 88,000 units were purchased, all at the same price of $30 per unit. 89,000 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 Cost of Goods Available Cost of Goods Sold # of units in ending inventory Ending Inventory # of units # of units sold per unit per unit per unit Beginning Inventory 24,000 $ 25 600,000 $ 25 $ $ 25 $ Purchases 88,000 30 2,640,000 $ 30 $ 30 Total 112,000 $ 3,240,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $600,000 (24,000 units at $25 each).
During 2021, 88,000 units were purchased, all at the same price of $30 per unit. 89,000 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 of Goods
Cost
Cost
Cost of Goods
Sold
# of units in ending
inventory
Ending
Inventory
# of units
per
unit
# of units sold
per
unit
per
unit
Available
Beginning Inventory
24,000 $ 25 $
600,000
$ 25 $
$ 25 $
Purchases
88,000
30
2,640,000
$ 30
$ 30
Total
112,000
3,240,000
$
$
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