Homework SourseA company just starting business made the following inventor
A company just starting business made the following inventory transactions in August:
Purchase on August 1
300 units
$1,560
Sale on August 8
200 units
3,400
Purchase on August 12
400 units
1,340
Sale on August 24
350 units
5,950
Using the LIFO inventory method, how much is cost of goods sold for August using a perpetual inventory system?
$2,212.50
$2,120
$9,350
$6,450
Solution
COGS OF GOODS SOLD = $2212.50
| Purchases | Sales | Balance | |||||||
| Date | Units | Cost | Total | Units | Cost | Total | Units | Cost | Total |
| 01/08 | 300 | $ 5.20 | $ 1,560 | 300 | $ 5.20 | $ 1,560 | |||
| 08/08 | 200 | $ 5.20 | $ 1,040.00 | 100 | $ 5.20 | $ 520 | |||
| 12/08 | 400 | $ 3.35 | $ 1,340 | 100 | $ 5.20 | $ 520 | |||
| 400 | $ 3.35 | $ 1,340 | |||||||
| 24/8 | 350 | $ 3.35 | $ 1,172.50 | 100 | $ 3.35 | $ 335 | |||
| 50 | $ 3.35 | $ 168 | |||||||
| Totals | 700 | $ 2,900 | 550 | $ 2,212.50 | 0 | $ - |
