Question

Sheffield Company uses a periodic inventory system. For April, when the company sold 560 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 240 $27 $ 6,480 April 15 purchase 370 32 11,840 April 23 purchase 390 35 13,650 1,000 $31,970 Compute the April 30 inventory and the April cost of goods sold using the LIFO method.

Answer 1

Answer:

$19,090

Explanation:

LIFO assumes that the last units to arrive will be sold first. Therefore, the cost of goods sold will be based on later (recent) prices.

Therefore,

Cost of Sales = 390 units x $35 + 170 x $32 = $19,090