A company reports the following beginning inventory and two purchases for the mo

Question

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 330 units. Ending inventory at January 31 totals 140 units Units Unit Cost Beginning inventory on January 1 Purchase on January!9 Purchase on January 25 300 70 100 $2.80 3.00 3.14 Required Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO Perpetual LIFO ds purchased ods Inventory Balance #of me Cost of Goods! Sold Cost per units #of units cost per unit Cost per Inventory Balance Date # of units unit unit sold 300$ 2.80 840 300|@ $ 2.80|#| $ 840 210 $ 1,050 January 1 January 9 70 3.00 70 S 300 100@ 3.14 3ool @?$ 2.80-$ 840 210 314 $ 1,364 January 25 70|@? $ 3.001- 100 S 3.14 100 70 $ 3.00 160@ $ 2.80!= 3.14$ 314 210 448 $ 972 0| @? $ 3.141- 0 $ 3.00 02.80 January 26 Totals

Explanation / Answer

Problem is properly solved , Closing inventory is not shown in your solution, Given in above sollution

CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER LIFO METHOD PURCHASES/ Opening Stock COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit   Total Cost January , 01 Beginning Inventory 300 $           2.80 $      840.00 January , 09 Purhcase on January 70 $             3.00 $               210.00 300 $           2.80 $      840.00 70 $           3.00 $      210.00 January , 25 Purhcase on January 100 $             3.14 $               314.00 300 $           2.80 $      840.00 70 $           3.00 $      210.00 100 $           3.14 $      314.00 January , 30 Sold 100 $               3.14 $         314.00 70 $               3.00 $         210.00 160 $               2.80 $         448.00 140 $           2.80 $      392.00 COST of GOODS Sold 330 $972 Closing Stock 140 $      392.00

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