Question

In: Accounting

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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