Question

Sunland Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 477 units that cost $60 each. During the month, the company made two purchases: 715 units at $63 each and 356 units at $65 each. Sunland Company also sold 1203 units during the month. Using the LIFO method, what is the amount of cost of goods sold for the month

Answer 1

Answer:

$76105

Explanation:

Total units of purchase made = 715 + 356 = 1071 units

Amount sold during month = 1203

1203 - 1071 = 132

713 at 63 dollars

356 at 65 dollars

132 at 60 dollars

(715*63)+(356*65)+(132*60)

= 45045 + 23140 + 7920

= $76105

Using the LIFO method, the amount of cost of goods sold for the month has been calculated to $76105