Required information Tristan Inc uses the LIFO costflow assu

Required information Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with 1,700 units of inventory carried at LIFO cost of $64 per unit. During the first quarter, it purchased 5,350 units at an average cost of $94 per unit and sold 6,000 units at $170 per unit. Assume the company expects to replace the units of beginning inventory sold in April at a cost of $96 per unit and expects inventory at year-end to be between 1,500 and 2,000 units. What amount of cost of goods sold should be recorded for the quarter ended March 31

Solution

Cost of Goods Sold = 5,350 Units X $94 + 650 Units X $96 Cost of Goods Sold = $502,900 + $62,400 Cost of Goods Sold = $565,300