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A company purchased 150 units of inventory for $20 each on January 31. On February 28,...

A company purchased 150 units of inventory for $20 each on January 31. On February 28, the company purchased another 200 units for $40 each. From March 1 through December 31, the company sold a total of 250 units for $110 each. Determine the Cost of Goods sold on the income statement on December 31, assuming the company uses the last-in, first-out inventory costing method.

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Expert Solution

LIFO
Date Particulars Units   Cost Amount COGS
31-Jan Purchases                 150.00                    20.00              3,000.00
28-Feb Purchases                 200.00                    40.00              8,000.00
Total available for sales                 350.00           11,000.00
Mar to Dec Cost of goods sold                 250.00              9,000.00 200*40 + 50*20
Ending Inventory                 100.00              2,000.00 100*20
Cost of goods sold                                    9,000.00
Ending Inventory                                      2,000.00

ekkarill92 answered 2 years ago
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