Question

A company markets a climbing kit and uses the perpetual inventory system to account for its...

A company markets a climbing kit and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during the month of January were as follows:

January 1 Begining balance of 18 units at $13 each
january 12 Purchased 30 units at $14 each
january 19 Sold 24 units at $30 selling price each
january 20 Purchased 24 units at $17 each
january 27 Sold 27 units at $30 selling price each

Required: Using the LIFO method of valuation, determine the cost of sales and value of the ending inventory.

Homework Answers

Answer #1

Schedule :

Date Quantity purchase Unit cost Total cost Quantity sold Unit cost Total cost of goods sold Quantity remaining Unit cost Ending inventory
Jan 1 18 13 234
Jan 12 30 14 420

18

30

13

14

234

420

Jan 19 24 14 336

18

6

13

14

234

84

Jan 20 24 17 408

18

6

24

13

14

17

234

84

408

Jan 27

24

3

17

14

408

42

18

3

13

14

234

42

Total 786 276

Cost of sale = 786

Ending inventory = 276

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