Compute ending inventory and cost of goods sold under the LIFO, assuming Matthias Company uses the periodic inventory system. On December 1, 2022, Matthias Company had the following account balances.DebitCreditCash$4,300Accumulated Depreciation-Equipment$1,600Accounts Receivable4.100Accounts Payable3,100*Inventory1,680Common Stock20,600Equipment22,900Retained Earnings7,680$32,980$32,980*(2,800 x $0.60)The following transactions occurred during December.Dec. 3 Purchased 3,900 units of inventory on account at a cost of $0.77 per unit.5Sold 4,500 units of inventory on account for $0.90 per unit. (Matthias sold 2,800 of the $0.60 units and 1,700 of the $0.77.)7Granted the December 5 customer $180 credit for 200 units of inventory returned costing $144. These units were returned to inventory.17Purchased 2,500 units of inventory for cash at $0.80 each. 22Sold 2,100 units of inventory on account for $0.95 per unit. (Matthias sold 2,100 of the $0.77 units.)Adjustment data:1. Accrued salaries payable $430.2. Depreciation $210 per month.

Under the LIFO perpetual system, every time there is a sales, the unit cost of the last item…

Answered: On December 1, 2022, Matthias Company…

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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