Question

The Boxwood Company sells blankets for $33 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

Date	Blankets	Units	Cost
May 3	Purchase	7	$14
10	Sale	4
17	Purchase	10	$16
20	Sale	5
23	Sale	2
30	Purchase	8	$23

Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the LIFO inventory cost method.

a.$32

b.$56

c.$184

d.$80

Answer 1

Answer-

PERPETUAL LIFO:
	Purchase	Cost of goods sold	Balance
	Date	Quantity	Rate	Total cost	Quantity	Rate	Total cost	Quantity	Rate	Total cost
	3-May	7	14	98				7	14	98
	10-May				4	14	56	3	14	42
	17-May	10	16	160				3	14	42
								10	16	160
	20-May				5	16	80	3	14	42
								5	16	80
	23-May				2	16	32	3	14	42
								3	16	48
	30-May	8	23	184				3	14	42
								3	16	48
								8	23	184
	Total				Cost of goods sold	168	Ending inventory	274

The correct option is d-$80

the cost of goods sold for the sale of May 20 using the LIFO inventory cost method:- 5 units purchased on 17 may @$16 = $80

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