Question

A company just starting business made the following inventory transactions in August:

Purchase on August 1

300 units

$1,560

Sale on August 8

200 units

3,400

Purchase on August 12

400 units

1,340

Sale on August 24

350 units

5,950

Using the LIFO inventory method, how much is cost of goods sold for August using a perpetual inventory system?

$2,212.50

$2,120

$9,350

$6,450

Answer 1

	Purchases			Sales			Balance
Date	Units	Cost	Total	Units	Cost	Total	Units	Cost	Total
01/08	300	$    5.20	$ 1,560				300	$    5.20	$ 1,560
08/08				200	$    5.20	$    1,040.00	100	$    5.20	$     520
12/08	400	$    3.35	$ 1,340				100	$    5.20	$     520
							400	$    3.35	$ 1,340
24/8				350	$    3.35	$    1,172.50	100	$    3.35	$     335
							50	$    3.35	$     168
Totals	700		$ 2,900	550		$    2,212.50	0		$         -

COGS OF GOODS SOLD = $2212.50