In: Accounting
Beginning inventory, purchases, and sales for Item Gidget are as follows:
Sept. 1 | Inventory | 80 units at $175 | |
10 | Sale | 65 units | |
18 | Purchase | 75 units at $180 | |
27 | Sale | 70 units |
Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30.
a. Cost of merchandise sold on September 27 | $ |
b. Inventory on September 30 | $ |
LIFO | |||||
Date | Particulars | Units | Cost | Amount | COGS |
1-Sep | Beginning Inventory | 80.00 | 175.00 | 14,000.00 | |
10-Sep | COGS | 65.00 | 11,375.00 | 65*175 | |
Total | 15.00 | 2,625.00 | |||
18-Sep | Purchases | 75.00 | 180.00 | 13,500.00 | |
Total | 90.00 | 16,125.00 | |||
27-Sep | COGS | 70.00 | 12,600.00 | 70*180 | |
Ending Inventory | 20.00 | 3,525.00 | |||
a. Cost of merchandise sold on September 27 | 12,600.00 | ||||
b. Inventory on September 30 | 3,525.00 |