Question

During 2021, a company sells 373 units of inventory for $88 each. The company has the following inventory purchase transactions for 2021:

Date		Transaction	Number of Units			Unit Cost			Total Cost
Jan.	1	Beginning inventory		66		$	62			$	4,092
May	5	Purchase		160			64				10,240
Nov.	3	Purchase		183			67				12,261
				409						$	26,593

Calculate ending inventory and cost of goods sold for 2021 assuming the company uses LIFO.

Answer 1

• Cost of Goods Sold = $ 24361
• Cost of ending inventory = 2232

LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	66	$                62.00	$                        4,092.00	30	$               62.00	$                 1,860.00	36	$                 62.00	$            2,232.00
Purchases:
05-May	160	$                64.00	$                      10,240.00	160	$               64.00	$               10,240.00	0	$                 64.00	$                         -
03-Nov	183	$                67.00	$                      12,261.00	183	$               67.00	$               12,261.00	0	$                 67.00	$                         -
TOTAL	409		$                      26,593.00	373		$               24,361.00	36		$            2,232.00