Filimonov Inc. has the following information related to purchases and sales of o

Question

Filimonov Inc. has the following information related to purchases and sales of one of its inventory items:

Assume that Filimonov Inc. uses a perpetual inventory system.

Required:

Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.

Date Description Units Purchased at Cost Units Sold at Retail June 1 Beginning Inventory 150 units @ $5 = $750 9 Purchase 1 200 units @ $12 = $2,400 14 Sale 1 300 units @ $25 22 Purchase 2 250 units @ $14 = $3,500 29 Sale 2 225 units @ $25

Explanation / Answer

So,

Cost of goods sold = $6,050

Cost of ending inventory = $600

Date Purchase Unit Cost($) Total ($) Sold Unit COGS ($) Total ($) Inventory Unit Cost($) Total ($) Beginning Inventory 150 5 750 Jun-09 200 12 2,400 150 5 750 200 12 2,400 Jun-14 200 12 2,400 100 5 500 50 5 250 Jun-22 250 14 3,500 50 5 250 250 14 3,500 Jun-29 225 14 3,150 50 5 250 25 14 350 End of June COGS 525 6,050 75 600

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