Question

points) A record of transactions for the month of May was as follows: Sales May 1 Purchases (balance) 400 @ $5.10 1,400 @ $5.20 600 @ $5.30 May 3 200 1,000 500

assuming that a perpetual inventory system is used compute the cost of good sold for the month of may using LIFO

Answer 1

	Purchase			Cost of goods sold			Ending inventory
Date	# of unit	cost per unit	Total Cost	# of unit	Cost per unit	Total Cost	# of unit	Cost per unit	Total cost
May 1							400	5.10	2040
May 3				200	5.1	1020	200	5.1	1020
May 4	1400	5.20	7280				200 1400	5.1 5.2	1020 7280
May 6				1000	5.2	5200	200 400	5.1 5.2	1020 2080
May 8	600	5.30	3180				200 400 600	5.1 5.2 5.3	1020 2080 3180
May 12				500	5.3	2650	200 400 100	5.1 5.2 5.3	1020 2080 530
Total						8870

Cost of goods sold under LIFO = $8870