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 260 $ 960 5/5 Purchase 360 $ 1,060 8/10 Purchase 460 $ 1,160 10/15 Purchase 280 $ 1,210 During the year, Lauer sold 1,150 laptop computers. What was cost of goods sold using the LIFO cost flow assumption

Answer 1

Answer:

Total LIFO Cost of Goods Sold  1150 units for $ 1302000

Explanation:

LIFo means last in first out. The units bought at the end of the period would be sold first.

Lauer Corporation

Date     Transaction        Number of Units Cost per Unit    Total

1/1          Beginning Inventory       260              $ 960          249600

5/5            Purchase                    360                 $ 1,060      381600

8/10            Purchase                  460                  $ 1,160       533600

10/15            Purchase                280                     $ 1,210      338800

Total                                         1360                                       $ 1503,600

During the year, Lauer sold 1,150 laptop computers.

LIFO COGS

280 units at   $ 1,210  =    338800

460  units at  $ 1,160  =  533600

360  units at  $ 1,060 =    381600

50 units at $ 960= $ 48000

Total LIFO Cost of Goods Sold  1150 units for $ 1302000