Question

Sunland Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 340 $23 $7,820 April 15 purchase 390 28 10,920 April 23 purchase 270 30 8,100 1,000 $26,840 Compute the April 30 inventory and the April cost of goods sold using the LIFO method. Ending inventory $enter a dollar amount Cost of goods sold $

Answer 1

Answer:

Ending inventory cost= $10,900

COGS= $15,940

Explanation:

To calculate the  ending inventory using LIFO (last-in, first-out) method, we need to use the cost of the lasts units incorporated into inventory:

Ending inventory in units= 1,000 - 550= 450

Ending inventory cost= 340*23 + 110*28= $10,900

Now, the cost of goods sold:

COGS= 270*30 + 280*28= $15,940