3.00 points Cansela Corporation uses a periodic inventory system and the LIFO me

Question

3.00 points Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2016 with inventory of 6,200 units of its only product. The beginning inventory balance of $82,200 consisted of the following layers: 2,700 units at $11 per unit = $ 29,700 3,500 units at $15 per unit52,500 $ 82,200 During the three years 2016-2018 the cost of inventory remained constant at $17 per unit. Unit purchases and sales during these years were as follows Purchases Sales 2016 2017 2018 20,500 22,000 27,000 29,000 22,500 23,600 1. Calculate cost of goods sold for 2016, 2017 and 2018. 2017 2018 371,000 489,000 394,600 2. Disregarding income tax, determine the LIFO Iiquidation profit or loss, if any, for each of the three years. esc 4 6

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Answer1 :

Answer 2:

Answer 3:

Year Sales units Calculation Cost of goods sold ($) Remarks 2016         22,000 (20500*17)+(1500*15)                              371,000 20,500 have been used from current year purchase and 1,500 have been used from last purchase. 2017         29,000 (27000*17)+(2000*15)                              489,000 27,000 have been used from current year purchase and 2,000 have been used from last purchase. 2018         23,600 (22500*17)+(1100*11)                              394,600 22,500 have been used from current year purchase and 1,100 have been used from last to last purchase.

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