Question

Determine Colour ending inventory and cost of goods sold under the LIFO perpetual basis. Begin by preparing Colour perpetual inventory record under the​ last-in, first-out​ (LIFO) method for the year

Transaction	Units	Sales in Units	Unit Cost	Total Cost
Beginning inventory 1/1	5,500		$51	$280,500
Purchases
March 30	4,500		67	301,500
July 15	850		70	59,500
September 1		6,600
Total available for sale	10,850			$641,500
Units sold September 1	(6,600)
Ending inventory	4,250

LIFO:					Cost of	Cost of
	Units	Unit	Total	Units	Goods Sold	Goods	Inventory
Transaction	Purchased	Cost	Cost	Sold	Per Unit	Sold	Balance
Beginning inventory 1/1
Purchase - March 30
Purchase - July 15
Sale - September 1

Answer 1

Answer- Ending inventory under LIFO method = $216750.

Cost of goods sold under LIFO method = $424750

Explanation-

LIFO Method
Goods purchased			Cost of goods sold	Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Jan-01						5500	51	280500
Mar-30	4500	67				5500	51	280500
						4500	67	301500
Jul-15	850	70				5500	51	280500
						4500	67	301500
						850	70	59500
Sep-01			850	70	59500	4250	51	216750
			4500	67	301500
			1250	51	63750
Totals			6600		424750	4250		216750