Answer:
Ending inventory $9,000
Cost of goods sold $19,500.
Step-by-step explanation:
Calculation for the cost of ending inventory and the cost of goods sold for the month of September using the last-in, first-out (LIFO) method
Calculation for the ENDING INVENTORY
First step is to calculate the Beginning Inventory
Beginning Inventory=200 Units x $20
Beginning Inventory= $4,000
Second Step is to calculate Purchase
Purchase=200 Units x $25
Purchase= $5,000
Last step is to calculate the Ending Inventory
Ending Inventory=4,000+5,000
Ending Inventory=$9,000
Therefore Ending Inventory will be $9,000
Calculation for COST OF GOODS SOLD
First step is to calculate Sep. 25 Purchase
Purchase=400 Units x $30
Purchase = $12,000
Second Step is to calculate Sep. 18 Purchase
Purchase=(500 units -200 units) ×$25
Purchase=300 Units x $25
Purchase= $7,500
Last Step is to calculate Cost of Goods Sold
Cost of Goods Sold=$12,000+$7,500
Cost of Goods Sold= $19,500
Therefore Cost of Goods Sold will be $19,500