Question

Sep. 1 Beginning Inventory 26 units @ $13 5 Sale 12 units 17 Purchase 21 units @ $14 30 Sale 19 units Assuming a perpetual inventory system and the last-in, first-out method: a. Determine the cost of the goods sold for the September 30 sale. $ b. Determine the inventory on September 30. $ Check My Work PreviousNext

Answer 1

Ans.	Perpetual LIFO:
	Purchase				Cost of goods sold			Balance
	Date	Quantity	Rate	Total cost	Quantity	Rate	Total cost	Quantity	Rate	Total cost
	1-Sep	26	$13.00	$338				26	$13.00	$338
	5-Sep				12	$13.00	$156	14	$13.00	$182
	17-Sep	21	$14.00	$294				14	$13.00	$182
								21	$14.00	$294
	30-Sep				19	$14.00	$266	14	$13.00	$182
								2	$14.00	$28
	Total				Cost of goods sold		$422	Cost of Ending inventory		$210
	*In LIFO method the units that have purchased last, are released the first one and the ending inventory
	units remain from the first purchases.
	Cost of goods sold for September 30 sales    =     $266
	Ending invenotry on September 30                  =     $210