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Eastview Company uses a perpetual LIFO inventory system, and has the following purchases and sales:
Eastview Company uses a perpetual LIFO inventory system, and has the following purchases and sales: January 1 150 units were purchased at $9 per unit.
January 17 120 units were sold.
January 20 160 units were purchased at $11 per unit.
January 29 150 units were sold.
What is the value of cost of goods sold?
Answer:The value of cost of goods sold is $2,730 as shown belowExplanation:The sale of 120 units made on January 17 is valued at $1,080 (120*$9) taking from stock purchased last on January 1The sale of 160 units on January 29 is valued at $1,650 (150 units*$11) taking the items purchased last on January 20The cost of goods sold =$1,080+$1,650Cost of goods sold=$2,730The value of closing inventory=30*$9+10*$11=$270+$110=$380Hence value of costs of good sold is $2,730 while closing inventory is valued at $380...
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