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Inventory Costing: LIFO
Filimonov Inc. has the following information related to purchases and sales of one of its inventory items:
Date | Description | Units Purchased at Cost | Units Sold at Retail |
June 1 | Beginning Inventory | 200 units @ $10 = $2,000 | |
9 | Purchase 1 | 300 units @ $12 = $3,600 | |
14 | Sale 1 | | 400 units @ $25 |
22 | Purchase 2 | 250 units @ $14 = $3,500 | |
29 | Sale 2 | | 225 units @ $25 |
Assume that the company uses a perpetual inventory system.
Required:
Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.
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