Question

Given the following​ data, calculate the cost of goods sold using the LIFO costing method assuming that periodic inventory records are kept in dollars.

Date	Item	Unit
​1/1	Beginning inventory	5 units at​ $22 per unit
​3/18	Purchase of inventory	11 units at​ $24 per unit
​6/20	Purchase of inventory	9 units at​ $27 per unit
​9/27	Purchase of inventory	28 units at​ $28 per unit
​11/27	Purchase of inventory	28 units at​ $29 per unit
​12/31	Ending inventory	18 units

$1,785.

$522

$1,691.

$428

$1,386

None of the above.

Answer 1

Correct answer---none of the above

Correct amount of Cost of goods sold is $1791 as calculated below

	Units	Cost per unit	value
Beginning Inventory	5	$     22.00	$       110.00
Purchases
18-Mar	11	$     24.00	$       264.00
20-Jun	9	$     27.00	$       243.00
27-Sep	28	$     28.00	$       784.00
27-Nov	28	$     29.00	$       812.00
	81		$   2,213.00

LIFO
Total Units Available for sale		81
Units Sold		63
Ending Inventory Units		18
Valuation
Ending Inventory	5	@	$         22.00	$           110.00
	13	@	$         24.00	$           312.00
Value Of Ending Inventory				$           422.00
Cost of Goods sold	(2213-422)			$        1,791.00