Atlen Inc has the following inventory items and costs for th

Atlen Inc. has the following inventory items and costs for the month. 1 unit purchased Jan 15 at a cost of $49. 1 unit purchased Jan 20 at a cost of $55. 1 unit purchased Jan 24 at a cost of $58 On January 26, the company sold 2 units for $70 each. The company uses the LIFO (Last In First Out) inventory method. What is the Cost of Goods Sold for the month? $$55 What is Gross Margin for the month? $ What is ending inventory for the month? $107

Solution

Under LIFO method :

a) Cost of goods sold for the month = 58+55 = $113

b) Gross margin = 140-113 = $27

c) Ending inventory = $49