Question

A company’s inventory records report the following in November of the current year: Beginning November 1 6 units @ $6 Purchase November 2 12 units @ $8 Purchase November 12 8 units @ $10 On November 8, it sold 14 units for $36 each. Using the LIFO perpetual inventory method, what was the amount recorded in the cost of goods sold account for the 14 units sold?

Answer 1

Perpetual LIFO :
	Goods Purchased		Cost of goods sold			Inventory Balance
Date	NO of units	Cost per unit	No of units	Cost per unit	Cost of goods sold	No of units	Cost per unit	Inventory Balance
01-Nov	6	$          6.00				6	$          6.00	$                 36.00
02-Nov	12	$          8.00				6	$          6.00	$                 36.00
						12	$          8.00	$                 96.00
08-Nov			12	$          8.00	$                 96.00	0	$          8.00	$                      -
			2	$          6.00	$                 12.00	4	$          6.00	$                 24.00
12-Nov	8	$         10.00				4	$          6.00	$                 24.00
						8	$         10.00	$                 80.00
			14		$               108.00	12		$                104.00
Cost of Goods sold for 14 Units = $108