Question

The Ivanhoe Shop shows the following data related to an item of inventory:

Inventory, January 1		310 units		@ $6.00
Purchase, January 9		870 units		@ $6.50
Purchase, January 19		210 units		@ $7.00
Inventory, January 31		310 units

What value should be assigned to cost of goods sold using LIFO?

Answer 1

• Cost of Goods Sold as per LIFO = $ 7125

LIFO	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	310	$                   6.00	$                        1,860.00	0	$                 6.00	$                              -	310	$                   6.00	$            1,860.00
Purchases:
09-Jan	870	$                   6.50	$                        5,655.00	870	$                 6.50	$                 5,655.00	0	$                   6.50	$                         -
19-Jan	210	$                   7.00	$                        1,470.00	210	$                 7.00	$                 1,470.00	0	$                   7.00	$                         -
TOTAL	1390		$                        8,985.00	1080		$                 7,125.00	310		$            1,860.00