Question

June 1st. Inventory		10	$3	$30
June 5th: Purchase		12	$5	$60
June 15th: Purchase		25	$7	$175
June 21st: Purchase		13	$10	$130
June 30th: Inventory		25		$395
What is the $ Amount for Cost of Goods Sold using
the LIFO cost flow assumption?

Answer 1

Ans)	Cost of good sold using LIFO cost flow assumption	$                                      284.00
		Unit	Unit Cost	Total Cost
	01-Jun	10	$               3.00	$                                         30
	05-Jun	12	$               5.00	$                                         60
	15-Jun	25	$               7.00	$                                      175
	21-Jun	13	$            10.00	$                                      130
	Total	60		$                                      395
	Closing Inventory on 30th June	25
	Units Sold(60-25)	35
	LIFO Ending Inventory
		Units	Rate	Total cost
	01-Jun	10	$               3.00	$                                   30.00
	05-Jun	12	$               5.00	$                                   60.00
	15-Jun	3	$               7.00	$                                   21.00
	Total	25		$                                111.00
	LIFO Method: Last in first out ,it means inventory which are purchased last,sold first.
	LIFO-Cost of goods sold
	Cost of goods available for sales	$                                      395.00
	Less: Ending Inventory	$                                      111.00
	Cost of goods sold	$                                      284.00
	LIFO Method: Last in first out ,it means inventory which are purchased last,sold first.
	Working
		Unit	Unit Cost	Total Cost
	21-Jun	13	$            10.00	$                                130.00
	15-Jun	22	$               7.00	$                                154.00
	Total	35		$                                284.00