Question

dssighm Kedunprogress=false Cornerstone Exercise 6-31 Inventory Costing Methods: Periodic LIFO (Appendix 6B) Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost Units Sold at Retail 200 units @$10 $2,000 June 1 Beginning Inventory 9 Purchase 1 300 units@$12 = $3,600 14 Sale 1 400 units@$25 250 units@$14 = $ 3,500 22 Purchase 2 29 Sale 2 225 units@$25 Assume that the company uses a periodic 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 Cost of ending inventory 600

600 is incorrect

Answer 1

Solution

Cost of goods sold	$ 7,850
Cost of ending inventory	$ 1,250

Working

LIFO
Total Units Available for sale		750
Units Sold		625
Closing Stock in Units		125
Valuation
Ending Inventory	125	@	$             10.00	$ 1,250
Value Of Ending Inventory				$              1,250
Cost of Goods sold				$              7,850