Ask Experts Questions for FREE Help !
Ask
    socki420's Avatar
    socki420 Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Nov 10, 2008, 04:05 PM
    LIFO Inventory Method using Perpetual Inv. System
    I need help calculating the cost of goods and ending inventory using the LIFO method.

    Beg. Inventory Jan. 1 1840 units @$2.3
    Purchase Jan. 30 2590 units @ $3
    Sale March 14 1480 units @ $6.9
    Purchase May 1 1120 units @ $4.4
    Sale Aug. 31 1990 units @ $6.9

    I can't wrap my brain around this for some reason and have become extremely frustrated. Please help me...
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
    Senior Member
    		  
    #2

    Nov 12, 2008, 10:23 PM

    Okay you should post this under homework but here are a few hints.

    Remember Last in First out: meaning at any given sale you are selling the most current product purchased that is still available.

    In March you are selling at the most recent purchase cost. In Aug you are selling at the most recent cost but you will sell out of that purchase and need to dip into the next one.

    I basically gave you the answer, no just do the math.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

LIFO perpetual inventory method [ 2 Answers ]

What is the cost of inventory on June 30 using LIFO perpetual inventory method in on June 1 Beginning inventory , 15 units @ $20.00 each June 15 Sale of 6 units for $50.00 each June 29 Purchase of 8 units at $25.00 each

Perpetual lifo method [ 1 Answers ]

The following set of questions is based on the data presented below. Assume that the company uses the PERPETUAL inventory system. Feb.1 On hand, 200 units at $5.00 each $1,000 8 Purchased 400 units at $5.15 each 2,060 15 Sold 5 00 units 22 Purchased 400 units at $5.20 each 2,080 28 On hand,...

Perpetual inventory system on a LIFO basis [ 1 Answers ]

Assuming that a perpetual inventory system is used, what is ending inventory on a LIFO basis? June 1 Beginning inventory 20 units @$76 5 Purchase 70 units @$80 14 Sale 25 units 21 Purchase ...

Perpetual inventory, LIFO [ 3 Answers ]

1/1... Beginning Inventory... 1,000... $12 2/4... Purchase... 2,000... $18 2/20... Sale... 2,500... $30 4/2... Purchase... 3,000... $23 11/4... Sale... 2,000... $33 How do I compute cost of goods sold using LIFO under the perpetual inventory system?

View more questions Search