Question

In: Accounting

The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 2,050...

The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 2,050 units at $23 each on January 1. Xu purchases 2,300 units at $22 each in February and 1,100 units at $24 each in March. There were no additional purchases or sales during the remainder of the year.

Xu sells 2,100 units during the quarter. If Xu uses the LIFO method, what is its cost of goods sold?

Solutions

Expert Solution

Cost of goods sold = $48,400

Working

Units Cost per unit value
Beginning Balance 2050 $                   23.00 $ 47,150
Purchases
2300 $                   22.00 $ 50,600
1100 $                   24.00 $ 26,400
Cost of goods available for sale 5450 $ 124,150

.

LIFO
Total Units Available for sale 5450
Units Sold 2100
Closing Stock in Units 3350
Valuation
Ending Inventory 2050 @ $             23.00 $ 47,150
1300 @ $             22.00 $ 28,600
Value Of Ending Inventory $            75,750
Cost of Goods sold 124150 minus 75750 $            48,400

ekkarill92 answered 2 years ago
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