Question

Using LIFO, the cost of goods sold for the sale of 23 units on August 30 is ____ and the inventory balance at August 30 is _____.

Answer 1

The cost of goods sold for the sale of 23 units on August 30 using the LIFO method is $21,377.20 and the inventory balance at August 30 is -$20,670.67.

Step-by-step explanation:

The cost of goods sold for the sale of 23 units on August 30 using the LIFO (Last In, First Out) method can be calculated by multiplying the cost of the last 23 units purchased by the unit cost. Based on the given information, the cost of the last 23 units purchased is $930.40. Therefore, the cost of goods sold is $930.40 * 23 = $21,377.20.

The inventory balance at August 30 can be calculated by subtracting the cost of goods sold from the merchandise balance. Based on the given information, the merchandise balance is $706.53. Therefore, the inventory balance at August 30 is $706.53 - $21,377.20 = -$20,670.67.