Question

Choco Inc. uses a perpetual inventory system. If Choco Inc. uses the LIFO method, how much is the cost of goods sold (COGS) for September?

9/1 Beginning inventory       300units @ $5.7

9/5 Sales (price $10/unit)     150units

9/15 Purchase                      500units @ $8.5

9/22 Sales (price $10/unit)   400units

Answer 1

	Cost of goods purchase		Cost of goods sold			Ending inventory
	Units	Units cost	Units	Unit cost	Total cost	Units	Unit cost	Total cost
9/1						300	5.7	1,710
9/5			150	5.7	855	150	5.7	855
9/15	500	8.5				150	5.7	855
						500	8.5	4,250
9/22			400	8.5	3,400	150	5.7	855
						100	8.5	850

Cost of goods sold = 3400+855

= 4,255

kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.