Question

HYT Company sells computer monitors (only one model). During February 2017, its inventory records were as follows: Date Units Unit Cost Total Cost Beginning Inventory 10 $20 $200 February 3 Purchase 21 $21 $441 February 5 Purchase 11 $23 $253 February 7 Sale -26 N/A February 9 Sale -14 N/A February 13 Purchase 21 $22 $462 February 23 Purchase 23 $19 $437 February 25 Sale -14 N/A February 27 Sale -23 N/A The cost of goods sold using the perpetual LIFO method is: Select one: a. $1,599 b. $1,622 c. $1,585 d. $1,613

Answer 1

Calculate cost of goods sold under LIFO perpetual method :

Date	Unit	Cost per unit	Total cost	Unit	Cost per unit	Cost of goods sold	Unit	cost per unit	Ending inventory
Beginning inventory							10	20	200
Feb 3	21	21	441				10 21	20 21	200 441
Feb 5	11	23	253				10 21 11	20 21 23	200 441 253
Feb 7				11 15	23 21	253 315	10 6	20 21	200 126
Feb 9				6 8	21 20	126 160	2	20	40
Feb 13	21	22	462				2 21	20 22	40 462
Feb 23	23	19	437				2 21 23	20 22 19	40 462 437
Feb 25				14	19	266	2 21 9	20 22 19	40 462 171
Feb 27				9 14	19 22	171 308	2 7	20 22	40 154

Cost of goods sold = $1599

So answer is a) $1599