Question

Beginning inventory, purchases, and sales data for tennis rackets are as follows:

April 3	Inventory	12 units @	$16.00
11	Purchase	10 units @	$20.00
14	Sale	11 units
21	Purchase	21 units @	$25.00
25	Sale	10 units

Assuming the business maintains a perpetual inventory system and calculates the cost of goods sold and ending inventory using LIFO.

Select the correct answer.

cost of goods sold $336.00 ending inventory $581.00

cost of goods sold $466.00 ending inventory $525.00

cost of goods sold $466.00 ending inventory $581.00

cost of goods sold $466.00 ending inventory $451.00

Answer 1

Correct answer--------cost of goods sold $466.00 ending inventory $451.00

Working

LIFO
		Purchased			Issue			Closing
Date		Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
Beginning Inventpry								12	$      16.00	$         192.00
11-Apr		10	$          20.00	$         200.00				12	$      16.00	$         192.00
								10	$      20.00	$         200.00
14-Apr					10	$            20.00	$     200.00			$                  -
					1	$            16.00	$       16.00	11	$      16.00	$         176.00
21-Apr		21	$          25.00	$         525.00				11	$      16.00	$         176.00
								21	$      25.00	$         525.00
25-Apr					10	$            25.00	$     250.00	11	$      16.00	$         176.00
								11	$      25.00	$         275.00
Total					21		466	22		$         451.00