Question

Windsor Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is available.

Units
Unit Cost
Total Cost
April 1 inventory 330 $22 $ 7,260
April 15 purchase 380 26 9,880
April 23 purchase
290
29
8,410
1,000
$25,550

Compute the April 30 inventory and the April cost of goods sold using the LIFO method.

Ending inventory
$
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Cost of goods sold
$
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Answer 1

• As per LIFO

>Ending Inventory = $ 12980

>Cost of Goods Sold = $ 12570

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	330	$                22.00	$                        7,260.00	0	$               22.00	$                              -	330	$                 22.00	$            7,260.00
Purchases:
15-Apr	380	$                26.00	$                        9,880.00	160	$               26.00	$                 4,160.00	220	$                 26.00	$            5,720.00
23-Apr	290	$                29.00	$                        8,410.00	290	$               29.00	$                 8,410.00	0	$                 29.00	$                         -
TOTAL	1000		$                      25,550.00	450		$               12,570.00	550		$          12,980.00