Question

Shown below is activity for one of the products of a shop:

January 1 balance, 510 units @ $60 $30,600
Purchases:
January 10:	510 units @ $65
January 20:	1,020 units @ $69
Sales:
January 12:	740 units
January 28:	760 units

Required:

Compute the January 31 ending inventory and cost of goods sold for January, assuming the shop uses LIFO perpetual inventory system.

Answer 1

		Receipt			Issue
Date	Particulars	Units	Per unit cost	Total Cost	Units	Per unit cost	Total Cost
Jan 1	Beginning Inventory	510	$60	$30,600
Jan 10	Purchases	510	$65	$33,150
Jan 12	Sales				510	$65	$33,150
					230	$60	$13,800
Jan 20	Purchases	1,020	$69	$70,380
Jan 28	Sales				760	$69	$52,440

Ending Inventory on Jan 31 = (260*$69)+(280*$60) = $17,940+$16,800 = $34,740

Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory = $30,600+$33,150+$70,380-$34,740 = $99,390