Question

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchase and sale transactions for March: Date Activity Units acquired at cost Units sold at retail March 1 beginning inventory 100 units @ $50/unit March 5 purchase 400 units @ $55/unit March 9 sale 420 units @ $85/unit March 18 purchase 120 units @ $60/unit March 25 purchase 200 units @ $62/unit March 29 sale 160 units @ $95/unit TOTALS 820 units 580 units Compute the cost of goods sold for the month using LIFO. $32,248 $31,800 $14,800 $32,920 $13,680 $50,900

Answer 1

Answer:-The cost of goods sold for the month using LIFO:-$32920

Explanation:-

LIFO Method
Goods purchased			Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Mar-01						100	50	5000
Mar-05	400	55				100	50	5000
						400	55	22000
Mar-09			400	55	22000	80	50	4000
			20	50	1000
Mar-18	120	60				80	50	4000
						120	60	7200
Mar-25	200	62				80	50	4000
						120	60	7200
						200	62	12400
Mar-29			160	62	9920	80	50	4000
						120	60	7200
						40	62	2480
Totals			580		32920