Answers
Ans. | Available for sale | |||||
Date | Units | Rate | Total | |||
1-Jan | 500 | $12.00 | $6,000 | |||
1-Apr | 100 | $13.00 | $1,300 | |||
1-Jul | 100 | $14.00 | $1,400 | |||
30-Sep | 100 | $15.00 | $1,500 | |||
Cost of goods available for sale | 800 | $10,200 | ||||
Ending inventory units = 400 units | ||||||
Units sold = Units available for sale - Units in ending inventory | ||||||
800 - 400 | 400 units | |||||
Periodic LIFO: | ||||||
Date | Units | Rate | Total | |||
30-Sep | 100 | $15.00 | $1,500 | |||
1-Jul | 100 | $14.00 | $1,400 | |||
1-Apr | 100 | $13.00 | $1,300 | |||
1-Jan | 100 | $12.00 | $1,200 | |||
Cost of goods sold | 400 | $5,400 | ||||
*In LIFO method the units that have purchased last, are released the first one and ending inventory units | ||||||
remain from the first purchase. | ||||||
Ending inventory = Total cost of goods available for sale - Cost of goods sold | ||||||
$10,200 - $5,400 | ||||||
$4,800 | ||||||
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