Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the year was $768,000 (32,000 units at $24 each). During the year, 104,000 units were purchased, all at the same price of $27 per unit. 112,000 units were sold during the year. Calculate ending inventory and cost of goods sold at the end of the year based on a periodic inventory system. Beginning Inventory Purchases Total Cost of Goods Available for Sale Cost per unit 32,000 $24 $ 104,000 27 136,000 Number of units Cost of Goods Available for Sale $ 768,000 2,808,000 3,576,000 Cost of Goods Sold - Periodic LIFO Cost per unit $ 24 $ $27 Number of units sold 0 Cost of Goods Sold $ 0 0 0 Ending Inventory - Periodic LIFO Cost Number of units in ending inventory per unit $24 $ $27 0 Ending Inventory $ 0 0 0

Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the year was $768,000 (32,000 units at $24 each). During the year, 104,000 units were purchased, all at the same price of $27 per unit. 112,000 units were sold during the year. Calculate ending inventory and cost of goods sold at the end of the year based on a periodic inventory system. Beginning Inventory Purchases Total Cost of Goods Available for Sale Cost per unit 32,000 $24 $ 104,000 27 136,000 Number of units Cost of Goods Available for Sale $ 768,000 2,808,000 3,576,000 Cost of Goods Sold - Periodic LIFO Cost per unit $ 24 $ $27 Number of units sold 0 Cost of Goods Sold $ 0 0 0 Ending Inventory - Periodic LIFO Cost Number of units in ending inventory per unit $24 $ $27 0 Ending Inventory $ 0 0 0

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Description: Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the year was $768,000 (32,000 unitsat $24 each). During the year, 104,000 units were purchased, all at the same price of $27 per unit. 112,000 units wer

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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