Question

Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 600 units-200 from each of the last three purchases. = Jan 1 Beginning inventory Mar. 7 Purchase July 28 Purchase Oct. 3 Purchase Dec. 19 Purchase Totals 300 units @ $4.00 640 units @ $6.25 1,280 units @ $6.50 1,160 units @ $7.00 720 units @ $8.90 4,100 units $ 1,200 = 4,000 8,320 8,120 6,408 $ 28,048 (a-d) Determine the cost assigned to ending inventory and to cost of goods sold for the following. (Do not round intermediate calculations and round your answers to 2 decimal places.) (a) Specific identification (b) Weighted average (c) FIFO (d) LIFO Ending Cost of Goods Inventory Sold $ 4.480.00 $ 23,568.00 $ 4,104.00 $ 23,944.00 $ 5.340.00 $ 22,708.00

What us the LIFO? I am having difficulty remembering.

Answer 1

Please find the attached solution.

The question has asked for LIFO method calculation but i have done other also. Further if any query please feel free to comment.

Thank you ?.
2. specizici Identizication, Question says that Ending Inventory must include 200 units each from last three furchases So that's Ending Inventory Vobucation : Dec-19 200 units @ 8.90 $1780 1400 200 linit @ 7.00 July. 28 200 unit @ 65071300 602 ünite $4400 Cast of Goods sold Jant. 300 units : 4.00 $1200 Mare 7 640 units @ 625 $4.000 July 28 1980 200 Wanits e$7020 oet 3 (1160-200 unik @ 7.00 $ 6720 Dec 19 720-200 W @ 8.9014628 3000 units. $23578 ر same as it as format for Elrot weighted Average Method should be followed. Like in Fifo, Fivel. De first out follows, tike closing inventory consits of last prochases And in weighted Average all Average have been takon accordingly. CS Scanned with CamScanner

3. Elto: I have explained Back Pages- It Consits of last Purchase as closing Inventory Nowi ending Inventory of 600 units are from Last Puschase te made on Decila. Cost of Ending Inventory bon Units X $8-20 = $53 3340 And Cost of Goods sold would be: Jan- 300 unit @ 4.00 Mar-7 74o units @ 6.25 July 23 1280 unib @ 6-50 1160 units @ 7.00 Dec 19 (120 units@ 890 ७ oct :3 $1200 & Yoo $8320 *120 $ 1068 $ 22708 (720-600 3500 units CS Scanned with CamScanner