Question

Given the following information, determine the cost of goods sold at December 31 using the LIFO periodic inventory method.

December 2: 13 units were purchased at $7.80 per unit.
December 9: 18 units were purchased at $10.20 per unit.
December 11: 20 units were sold at $35.80 per unit.
December 15: 28 units were purchased at $10.95 per unit.
December 22: 26 units were sold at $35.80 per unit.

Answer 1

Cost of goods sold = $483.9

Step-by-step explanation:

Under the last in first out, inventory pricing method, inventories are priced a using the price of the latest batch in stock and then the next second latest batch and so on e.t.c

The cost of goods sold would be

December 1

(18 units× $10.20) + ( 2 units × $7.80) = $199.2

December 22

26 units × $10.95 = $284.7

Total cost goods sold

= = $284.7+ $199.2

cost of go0ds sold= $483.9