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 1 year ago

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