Question

Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	200 units @ $15
5	Purchase	245 units @ $17
10	Sales		165 units @ $25
15	Purchase	125 units @ $18
24	Sales		115 units @ $26

Answer 1

Answer:- The cost assigned to cost of goods sold using LIFO =$4875.

Explanation:-

LIFO Method
Goods purchased				Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	Total cost	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
May-01	200	15	3000				200	15	3000
May-05	245	17	4165				200	15	3000
							245	17	4165
May-10				165	17	2805	200	15	3000
							80	17	1360
May-15	125	18	2250				200	15	3000
							80	17	1360
							125	18	2250
May-24				115	18	2070	200	15	3000
							80	17	1360
							10	18	180
Totals				280		4875