Question

Use the transactions below to answer the following questions. Round to the nearest cent for per unit cost and the nearest dollar for the totals for COGS, Ending Inventory and Gross Profit.

Date		Quantity	Unit Cost	Sale Price
Mar 1	Beginning Inventory	30	$30
Mar 4	Purchase	40	$28
Mar 8	Sale	35		$54
Mar 15	Purchase	50	$26
Mar 20	Sale	42		$55

Using the LIFO Method for inventory costing calculate the following amounts for the month of March. Enter the amount without dollar signs, commas or decimals, i.e. 123 instead of $123 or 123.00.

Total Cost of Goods Sold for March:

Total Cost of Ending Inventory at the end of March:

Answer 1

Answer)

Calculation of cost of goods sold and value of ending inventory using LIFO method

Date	Purchase	Cost of Goods sold	Balance inventory
Quantity	Cost per unit (In $)	Total Cost (in $)	Quantity	Cost per unit (In $)	Total Cost (in $)	Quantity	Cost per unit (In $)	Total Cost (in $)
Mar'1							30	30	900
Mar'4	40	28	1,120				30	30	900
							40	28	1,120
Mar'8				35	28	980	30	30	900
							5	28	140
Mar'15	50	26	1,300				30	30	900
							5	28	140
							50	26	1,300
Mar'20				42	26	1,092	30	30	900
							5	28	140
							8	26	208
Total	90		2,420	77		2,072	43		1,248

Under LIFO method cost of goods sold is $ 2,072 and value of ending inventory is $ 1,248.