Question

Calculate the ending inventory if the company uses LIFO method

March		1		Beginning inventory 1,950 liters at a cost of 60¢ per liter.
March		3		Purchased 2,475 liters at a cost of 65¢ per liter.
March		5		Sold 2,320 liters for $1.10 per liter.
March		10		Purchased 3,820 liters at a cost of 72¢ per liter.
March		20		Purchased 2,580 liters at a cost of 80¢ per liter.
March		30		Sold 5,160 liters for $1.25 per liter.

I got

03/05 COGS -> 2320(.65)= $ 1508

03/30 COGS -> 2580(0.80)+2580(0.72)= $ 3921.6

TOTAL COGS= $ 5429.6

ENDING INVENTORY= 7593.15-5429.6= $ 2163.55

WHY IS THIS WRONG?

Answer 1

LIFO
	Opening Inventory	Purchase	Sales	Cost of Goods sols	Closing Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
MARCH .1	1,950	0.60	1,170			-			-				1,950	0.60	1,170
MARCH .3	1,950	0.60	1,170	2,475	0.65	1,609			-				1,950	0.60	1,170
													2,475	0.65	1,609
MARCH .5	1,950	0.60	1,170				2,320	1.1	2,552	2,320	0.65	1,508	1,950	0.60	1,170
	2,475	0.65	1,609										155	0.65	101
MARCH .10	1,950	0.60	1,170	3,820	0.72	2,750							1,950	0.60	1,170
	155	0.65	101										155	0.65	101
													3,820	0.72	2,750
MARCH .20	1,950	0.60	1,170	2,580	0.80	2,064							1,950	0.60	1,170
	155	0.65	101										155	0.65	101
	3,820	0.72	2,750										3,820	0.72	2,750
													2,580	0.80	2,064
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