Question

Exercise 8-10 (Part Level Submission)

Inventory information for Part 311 of Coronado Corp. discloses the following information for the month of June.

June 1		Balance		298 units @ $11		June 10		Sold		200 units @ $26
11		Purchased		802 units @ $13		15		Sold		497 units @ $27
20		Purchased		497 units @ $14		27		Sold		300 units @ $29

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?

The ending inventory at LIFO

Answer 1

• The ending Inventory at LIFO = $ 7801 Answer

• Workings

LIFO Perpetual	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	298	$                11.00	$                        3,278.00	200	$               11.00	$                 2,200.00	98	$                 11.00	$            1,078.00
Purchases:
11-Jun	802	$                13.00	$                      10,426.00	497	$               13.00	$                 6,461.00	305	$                 13.00	$            3,965.00
20-Jun	497	$                14.00	$                        6,958.00	300	$               14.00	$                 4,200.00	197	$                 14.00	$            2,758.00
TOTAL	1597		$                      20,662.00	997		$               12,861.00	600		$            7,801.00