The following data is available:
$$\begin{array} { | l | l | l | }
\hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \
\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \
\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \
\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \
\hline \text { Number of units available for sale } & 2,200 \text { total units } & \
\hline \text { On hand at end of period } & 600 \text { units } & \
\hline \text { Number of units sold during period } & 1,600 \text { sold } & \
\hline
\end{array}$$ Of the 1600 items sold, 300 were sold from the beginning inventory, 500 were sold after the first purchase, 600 were sold after the second purchase and 200 were sold after the third purchase. The cost of goods sold under Last-in, First-out (perpetual inventory) is:

Question

The following data is available:
$$\begin{array} { | l | l | l | } 
\hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \
\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \
\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \
\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \
\hline \text { Number of units available for sale } & 2,200 \text { total units } & \
\hline \text { On hand at end of period } & 600 \text { units } & \
\hline \text { Number of units sold during period } & 1,600 \text { sold } & \
\hline
\end{array}$$ Of the 1600 items sold, 300 were sold from the beginning inventory, 500 were sold after the first purchase, 600 were sold after the second purchase and 200 were sold after the third purchase. The cost of goods sold under Last-in, First-out (perpetual inventory) is:

Quizplus · Accepted Answer

The cost of goods sold under Last-in, First-out (perpetual inventory) is $5,310. This is because the 200 units sold after the third purchase were the most recent units purchased and therefore have the highest cost of $3.40 per unit. The 600 units sold after the second purchase were the next most recent units purchased and therefore have the next highest cost of $3.30 per unit. The 500 units sold after the first purchase were the next most recent units purchased and therefore have the next highest cost of $3.50 per unit. The 300 units sold from the beginning inventory were the oldest units and therefore have the lowest cost of $3.00 per unit.

The Following Data Is Available Of the 1600 Items Sold, 300 Were Sold from the l