Loyola Enterprises reports the following inventory information for the current year. Under the LIFO perpetual...
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Loyola Enterprises reports the following inventory information for the current year. Under the LIFO perpetual method, Loyola Enterprises' total cost of ending inventory is $3,000 and the cost of goods sold for the year is $23,800. Determine whether there is a LIFO liquidation:
There ______ (is/is not) a LIFO liquidation in this case because the ______ units purchased or produced are ______ (less than/greater than/the same as) the ____ units sold. The ______ units in ending inventory are ____ (greater than/less than) the _____units in beginning inventory.
LIFO Inventory Unit Cost X Units Total Cost Description Beginning inventory: January 1 First layer $ 12 x 850 $ 10,200 9,100 700 Second layer $ 13 x 1,550 $ 19,300 Total beginning inventory Purchases or Production: 500 $ 15 x 7,500 August 31 $ 26,800 Cost of goods available for sale Units sold on December 1 at $13.30 2,050 (1,800) 250 Ending inventory: December 31
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