The Schofield Inc. uses a periodic inventory system. The company has a beginning inventory of 1,250...

The Schofield Inc. uses a periodic inventory system. The company has a beginning inventory of 1,250 units at $15 each on January 1. Schofield purchases 1,500 units at $14 each in February and 700 units at $16 each in March. There were no additional purchases or sales during the remainder of the year.

Schofield sells 1,300 units during the quarter. If Schofield uses the LIFO method, what is its cost of goods sold?

Multiple Choice

$19,400
$20,800
$19,600
$650.

Solutions

Expert Solution

Correct answer-----------$19,600

Working

LIFO
Total Units Available for sale		3450
Units Sold		1300
Closing Stock in Units		2150

Valuation
Ending Inventory	1250	@	$ 15.00	$ 18,750
	900	@	$ 14.00	$ 12,600

Value Of Ending Inventory				$ 31,350

Cost of Goods sold	50950 minus 31350			$ 19,600

	Units	Cost per unit	value
Beginning Balance	1250	$ 15.00	$ 18,750
Purchases
	1500	$ 14.00	$ 21,000
	700	$ 16.00	$ 11,200

Cost of goods available for sale	3450		$ 50,950

ekkarill92 answered 1 year ago

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