Question

Cornerstone Exercise 6-23 (Algorithmic) Inventory Costing: LIFO Bordeaux Company has the following information related to purchases and sales of one of its inventory items: Units Sold at Retail Units Purchased at Cost 150 units O $11 = $1,650 Date Description June 1 Beginning Inventory 9 Purchase 1 14 Sale 1 300 units @ $25 250 units $14 = $3,500 29 Sale 2 225 units @ $25 Assume that Bordeaux Company uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method. Cost of goods sold 5 6 ,725 X Cost of ending inventory $ 825 x Feedback Check My Work For cost of goods sold using the LIFO inventory costing method, apply the following steps: Step 1: Calculate the cost of goods available for sale for the period. Step 2: Apply the Inventory costing method recognizing that under LIFO, the most recent purchases (newest costs) are allocated to cost of goods sold For cost of ending inventory using the LIFO inventory costing method, apply the following steps: Step 1: Calculate the cost of goods available for sale for the period Stan 2 Annt the Inventornin mother arrin in that interlin the earliest nurhace ninet nere are aliratori in an inn imani

Answer 1

LIFO	Cost of goods available for sale			Cost of goods sold			Ending inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units in ending inventory	Cost per unit	Ending inventory
Beginning Inventory
Jun-01	150	$                  11.0	$          1,650
Purchases
Jun-09	200	$                  12.0	$          2,400
Sales
Jun-14				200	$    12.00	$      2,400
				100	$    11.00	$      1,100	50	$   11.00	$        550
Purchases
Jun-22	250	$                  14.0	$          3,500
Sales
Jun-29				225	$    14.00	$      3,150
							50	$   11.00	$        550
							25	$      14.0	$        350
Total	600		$          5,900	525		$      6,650	75	$      5.50	$        900
Cost of goods available for sale			$          5,900
Cost of goods sold			$          6,650
Ending inventory			$              900