Using a perpetual system, what is the cost of the goods sold for November if the...

Using a perpetual system, what is the cost of the goods sold for November if the company uses LIFO?

Nov. 01	Inventory	22 units at $21.00
Nov. 04	Sold	9 units
Nov. 10	Purchased	33 units at $23.00
Nov. 17	Sold	25 units
Nov. 30	Purchased	23 units at $24.00

Using the perpetual LIFO system, what is the cost of the merchandise sold for November?

Expert Solution

Answer)

Calculation of Cost of goods sold for November using LIFO method, perpetual inventory system

Date	Goods Purchased	Cost of goods sold	Balance Inventory
Number of Units	Cost per Unit (In $)	Goods Purchased(In $)	Number of Units sold	Cost per Unit (In $)	Cost of Goods Sold (In $)	Number of Units	Cost per Unit (In $)	Inventory Balance (In $)
Nov'1							22	$ 21.00	$ 462.00
Nov'4				9	$ 21.00	$ 189.00	13	$ 21.00	$ 273.00
Nov'10	33	$ 23.00	$ 759.00				13	$ 21.00	$ 273.00
							33	$ 23.00	$ 759.00
Nov'17				25	$ 23.00	$ 575.00	13	$ 21.00	$ 273.00
							8	$ 23.00	$ 184.00
Nov'30	23	$ 24.00	$ 552.00				13	$ 21.00	$ 273.00
							8	$ 23.00	$ 184.00
							23	$ 24.00	$ 552.00
Total	56		$ 1,311.00	34		$ 764.00	44		$ 1,009.00

Therefore cost of goods sold using LIFO method, perpetual inventory system is $ 764.

ekkarill92 answered 3 years ago

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