Question

Venus Wholesale Co. started carrying a new product in December. Purchases and sales of this product during the month of December were: Dec 20 Purchased 100 units at $80 per unit. Dec 26 Purchased 80 units at $85 per unit Dec 27 Sold 80 units. Dec 28 Purchased 100 units at $90 per unit. The company used perpetual inventory system and sold each unit of the product for $120. Assuming the LIFO flow assumption was in use, the perpetual inventory records would indicate cost of goods sold at December 27 of:

Answer 1

	Available for sale			Cost of goods sold			Ending Inventory
Date	Units	Unit cost	Total Cost	Units	Unit cost	Total Cost	Units	Unit Cost	Total Cost
Dec-20	100	80	8,000				100	80	8,000
Dec-26	80	85	6,800				100	80	8,000
							80	85	6,800
Dec-27				80	85	6,800	100	80	8,000
Dec-28	100	90	9,000				100	80	8,000
							100	90	9,000
Total						6,800			17,000

cost of goods sold at December 27 = $6,800.

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Thanks‼!