Question

Lauer Corporation has provided the following information about one of its laptop computers: Date Transaction Number of Units Cost per Unit 1/1 Beginning Inventory 260 $ 960 5/5 Purchase 360 $ 1,060 8/10 Purchase 460 $ 1,160 10/15 Purchase 280 $ 1,210 During the year, Lauer sold 1,150 laptop computers. What was cost of goods sold using the LIFO cost flow assumption

Answer 1

Total LIFO Cost of Goods Sold 1150 units for $ 1302000

Step-by-step explanation:

LIFo means last in first out. The units bought at the end of the period would be sold first.

Lauer Corporation

Date Transaction Number of Units Cost per Unit Total

1/1 Beginning Inventory 260 $ 960 249600

5/5 Purchase 360 $ 1,060 381600

8/10 Purchase 460 $ 1,160 533600

10/15 Purchase 280 $ 1,210 338800

Total 1360 $ 1503,600

During the year, Lauer sold 1,150 laptop computers.

LIFO COGS

280 units at $ 1,210 = 338800

460 units at $ 1,160 = 533600

360 units at $ 1,060 = 381600

50 units at $ 960= $ 48000

Total LIFO Cost of Goods Sold 1150 units for $ 1302000