HYT Company sells computer monitors (only one model). During February 2017, its
ID: 2414765 • Letter: H
Question
HYT Company sells computer monitors (only one model). During February 2017, its inventory records were as follows: Date Units Unit Cost Total Cost Beginning Inventory 10 $20 $200 February 3 Purchase 21 $21 $441 February 5 Purchase 11 $23 $253 February 7 Sale -26 N/A February 9 Sale -14 N/A February 13 Purchase 21 $22 $462 February 23 Purchase 23 $19 $437 February 25 Sale -14 N/A February 27 Sale -23 N/A The cost of goods sold using the periodic LIFO method is: Select one: a. $1,599 b. $1,622 c. $1,585 d. $1,613
Explanation / Answer
Calculate cost of goods sold on LIFO periodic method :
Total sales unit = 26+14+14+23 = 77 unit
Cost of goods sold under LIFO periodic method = (23*19+21*22+11*23+21*21+1*20) = $1613
So answer is d) $1613
Unit Cost Beginning inventory 10 200 Feb 3 Purchase 21 441 Feb 5 Purchase 11 253 Feb 13 Purchse 21 462 Feb 23 Purchase 23 437Related Questions
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