Question

Lauer Corporation has provided the following information about one of its laptop computers: Date Transaction Number of Units Cost per Unit 1/1 Beginning Inventory 240 $ 940 5/5 Purchase 340 $ 1,040 8/10 Purchase 440 $ 1,140 10/15 Purchase 270 $ 1,190 During the year, Lauer sold 1,100 laptop computers. What was cost of goods sold using the LIFO cost flow assumption?

Answer 1

Answer:

$1,223,500

Explanation:

The computation of cost of goods sold using LIFO method is shown below:-

Here, we are using LIFO method so we calculate from last number of units and cost per unit so we need to get 1,100

So, units from last 270 + 440 + 340 = 1,050

Now we need 50 units from purchase units so cost of goods sold

= 270 × $1,190 + 440 × $1140 + 340 × $1,040 + 50 × 940

= $321,300 + $501,600 + $353,600 + $47,000

= $1,223,500