Question

Assuming a perpetual inventory system and the last-in, first-out method: Nov. 1 Purchased 600 units $80 each 4 Sold 200 units 11 Purchased 350 units $82 each 12 Sold 275 units 22 Purchased 175 units $84 each 23 Sold 155 units a. Determine the inventory on November 30. $fill in the blank 1 b. Determine the cost of the goods sold for November. $fill in the blank 2

Answer 1

Results are below.

Step-by-step explanation:

Giving the following information:

Nov. 1 Purchased 600 units $80 each

Nov. 4 Sold 200 units

Nov. 11 Purchased 350 units $82 each

Nov. 12 Sold 275 units

Nov. 22 Purchased 175 units $84 each

Nov. 23 Sold 155 unit

The perpetual inventory system records a sale in real-time. Under the LIFO inventory method, we need to use the cost of the last units incorporated into inventory.

a) First, we need to calculate the ending inventory cost on November 30:

Ending inventory cost:

Nov. 1= 600*80=48,000

Nov. 4= (200*80)= (16,000)

Nov. 11= 350*82= 28,700

Nov. 12= (275*82)= (22,500)

Nov. 22= 175*84= 14,700

Nov. 23= (155*84)= (13,020)

Ending inventory cost= $39,880

Now, the cost fo goods sold:

COGS= 16,000 + 22,500 + 13,020

COGS= $51,520