Question

Marigold Corp. uses the periodic inventory system. For the current month, the beginning inventory consisted of 477 units that cost $65 each. During the month, the company made two purchases: 715 units at $68 each and 364 units at $70 each. Marigold Corp. also sold 1197 units during the month. Using the LIFO method, what is the amount of cost of goods sold for the month?

Answer 1

Answer:

COGS= $81,770

Explanation:

Giving the following information:

Beginning inventory= 477 units that cost $65 each.

Purchases:

715 units at $68 each

364 units at $70 each.

Units sold= 1,197

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

COGS= 364*70 + 715*68 + 118*65

COGS= $81,770