Question

The following units of a particular item were available for sale during the calendar year:

Answer 1

Answer:

The cost of goods sold for eachs ale and the inventory balance after each sale, assuming the LIFO (last-in, first-out) method:

                  Cost of goods sold      Ending Inventory

Apr. 19   Sale            $100,000                   $60,000

Sept. 2  Sale             $218,000                   $40,000

Explanation:

a) Data and Calculations:

Date       Description       Units     Unit Cost      Total            Balance

Jan. 1      Inventory       4,000            $40        $160,000

Apr. 19   Sale               (2,500)                           (100,000)    $60,000

June 30 Purchase       4,500            $44          198,000     258,000

Sept. 2  Sale               (5,000)                           (218,000)      40,000

Nov. 15  Purchase       2,000            $46           92,000      132,000

Cost of goods sold:                              Ending Inventory

April 19: = 2,500 * $40 = $100,000     = 1,500 * $40 = $60,000

Sept 2: =  4,500 * $44 + 500 * $40    = 1,000 * $40 = $40,000

            =  $198,000 + $20,000

           =  $218,000