Question

[The following information applies to the questions displayed below.]

In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 340 units at $9 on January 1, (2) 630 units at $10 on January 8, and (3) 930 units at $12 on January 29. Assume 1,170 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the LIFO. Assume a periodic inventory system is used.(Round "Cost per Unit" to 2 decimal places.)

Answer 1

Ans.	Available for sale
	Date		Units	Rate	Total
	1-Jan		340	$9.00	$3,060
	8-Jan		630	$10.00	$6,300
	29-Jan		930	$12.00	$11,160
	Cost of goods available for sale		1900		$20,520
	*In LIFO method the units that have purchased last, are released the first one and the ending inventory
	units remain from the first purchases.
	*Calculations for Ending Inventory:
	Date	Units	Rate	Total
	1-Jan	340	$9.00	$3,060
	8-Jan	630	$10.00	$6,300
	29-Jan	200	$12.00	$2,400
	Ending Inventory	1170		$11,760
	*Calculations for Cost of goods sold:
	Cost of goods available for sale		$20,520
	Less: Ending Inventory		-$11,760
	Cost of goods sold		$8,760