Question

Swifty has the following inventory data: July 1 Beginning inventory 23 units at $4.60 5 Purchases 91 units at $5.00 14 Sale 61 units 21 Purchases 46 units at $5.50 30 Sale 43 units Assuming that a perpetual inventory system is used, what is the cost of goods sold on a LIFO basis for July

Answer 1

$541.50

Step-by-step explanation:

LIFO method assumes that the inventory to arrive last will be sold first. Thus, valuation of cost of goods sold is based on latest prices.

Cost of goods sold calculation :

14 July Sale = 61 units x $5.00 = $305.00

30 July Sale = 43 units x $5.50 = $236.50

Total = $541.50

therefore,

the cost of goods sold on a LIFO basis for July is $541.50