Ask Me Help Desk - Periodic inventory system on a LIFO basis

Quote:

Originally Posted by sweetkendra

14. Use this inventory information for the month of June to answer the following question.

June 1 Beginning inventory 10 units @ $120
5 Purchase 60 units @ $112
14 Sale 40 units
21 Purchase 30 units @ $116
30 Sale 28 units

Assuming that a periodic inventory system is used, what is cost of goos sold on a LIFO basis?

a) $7,696
b) $7,736
c) $3,664
d) $3,704

Any help is greatly appreciated ....I don't understand these at all

ok i will explain this problems to you... lifo mean first in first out. What ever inventory come in last or bought last will be declare as you cost of good in this problem you have a purchase of 60 units prior your 40 units sale. So your inventory has 10 units that cost $120 and 60 that cost $112 to lifo terms you need to sell what ever came first so sell 40 units of the last sixty living a balance of 10 units for $120 and 20 for $112now you have 30 units for $116 now sell 28 of the last 30 units because of lifo and you get as final inventory balance a total of 2 units for $116and20 units for $112 and 10 for $120... final ly giving you 3672 for your inventory for cost of goods sold just do the 40 units you sold for 112 that was the cost of the units you sold and then plus 28x116 because that's what does unit cost thanks to lifo... answer 7,728 which is not in your answers which is kind of add