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Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning Inventory 25 units @ $11 5 S
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Last-in, First-out Method: Under this method, cost of inventory sold and value of ending inventory is calculated on the assumption that the inventory which is latest bought will be first sold and moving backwards.

Calculation of Cost of Goods Sold and Value of Ending Inventory under Last-in, First-out method

Date

Purchases

Cost of Goods Sold

Inventory Balance

Units

Cost per unit

Amount

Units

Cost per unit

Amount

Units

Cost per unit

Amount

Sep'1

25

$ 11

$ 275

Sep'5

13

$ 11

$ 143

12

$ 11

$ 132

Sep'17

25

$ 13

$ 325

12

$ 11

$ 132

25

$ 13

$ 325

Sep'30

15

$ 13

$ 195

12

$ 11

$ 132

10

$ 13

$ 130

Total

25

$ 325

28

$ 338

22

$ 262
  1. Cost of Goods Sold: The cost of goods sold for the month of September is $ 338.
  2. Value of Inventory: The value of inventory on September 30 is $ 262.
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