Question

THE Company employs a periodic inventory system and
sells its inventory to customers for $10 per unit.
THE Company had the following inventory information
available for the month of May: May 1 Beginning inventory 280 units @ $3.80 cost
per unit May 6 Purchased 350 units @ $4.90 cost per unit
May 8 Purchased 240 units @ $4.10 cost per unit May 14 Sold 410 units May 19 Purchased 400 units @ $5.75 cost per unit
May 23 Sold 270 units
May 27 Sold 120 units May 29 Purchased 230 units @ $3.90 cost per unit The amount of cost of goods sold reported on THE
Company's income statement for May using the LIFO
method was equal to:

Answer 1

LIFO:

Date	Purchases	COGS	Balance
May	Units	Cost per Unit	Total	Units	Cost per Unit	Total	Units	Cost per Unit	Total
1							280	3.80	1,064
6	350	4.90	1,715				280 350	3.80 4.90	1,064 1,715
8	240	4.10	984				280 350 240	3.80 4.90 4.10	1,064 1,715 984
14				240 170	4.10 4.90	984 833	280 180	3.80 4.90	1,064 882
19	400	5.75	2,300				280 180 400	3.80 4.90 5.75	1,064 882 2,300
23				270	5.75	1,552.50	280 180 130	3.80 4.90 5.75	1,064 882 747.50
27				120	5.75	690	280 180 10	3.80 4.90 5.75	1,064 882 57.50
29	230	3.90	897				280 180 10 230	3.80 4.90 5.75 3.90	1,064 882 57.50 897
Total	1,220		5,896	800		4,059.50	700		2,900.50

Cost of Goods Sold = $4,059.50