Lambeth Company experienced the following events in February:DateEventUnits Unit CostTotal CostFeb. 1Purchased inventory100@$20$2,000Feb. 4Sold inventory50 Feb. 9Purchased inventory100@$22$2,200Feb. 27Sold inventory100 If the Lambeth Company uses the LIFO inventory costing method, calculate the company’s cost ofgoods sold and ending inventory as of February 28 assuming the periodic method.Cost of goods soldAnswer Ending inventoryAnswer

Name: Lambeth Company experienced the following events in February:DateEvent
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Lambeth Company experienced the following events in February:DateEventUnits Unit CostTotal CostFeb. 1Purchased inventory100@$20$2,000Feb. 4Sold inventory50 Feb. 9Purchased inventory100@$22$2,200Feb. 27Sold inventory100 If the Lambeth Company uses

Periodic inventory system: A periodic inventory system is a system of measuring inventory which is calculated at the end of a period using physical count used in normal retail stores Perpetual inventory system: A perpetual inventory system is a system of measuring inventory which is calculated using continues estimating the inventory using electronic records not physical calculations Methods in inventory calculation FIFO- the FIFO or first in first out is a method where the firstly bought goods are sold firstly LIFO- the LIFO or Last In Last Out is a method where the last purchased items are sold firstly Weighted average– here the average cost of inventory is taken and it is used in the cost of goods sold and ending inventory calculationLast in last out : Cost of Goods Sold = 3,200 Ending inventory = 1,000 Last in last out : Cost of Goods Sold = (Units in Feb 9 purchase * unit cost of Feb 9 purchase) + (unit sold - Units in Feb 9 purchase * unit cost of Feb 1 purchase) = (100 * 22) + ((150 – 100) * 20) = 2,200 + 1,000 = 3,200 Ending inventory = (Balance of units in Feb.1 purchase * unit cost of Feb 1 purchase) = 50 * 20 = 1,000 Total units sold = Units sold in Feb. 27 + Units sold in Feb 4 = 100 + 50 = 150