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View Full Version : LIFO Inventory Method using Perpetual Inv. System


socki420
Nov 10, 2008, 04:05 PM
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
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.