Santa Fe Tile Company had the following inventory purchases and sales during the month of May.The company uses the periodic inventory method. $$\begin{array} { | c | c | c | c | c | c | c | }
\hline & \text { Purchases } & & & \text { Sales } & & \
\hline \text { Date } & \text { Units } & \text { Unit Cost } & \text { Total } & \text { Units } & \text { Unit Price } & \text { Total } \
\hline \text { May 1 } & 100 & \$ 4 & \$ 400 & & & \
\hline 5 & 200 & 5 & 1,000 & & & \
\hline 10 & & & & 100 & \$ 10 & \$ 1,000 \
\hline 15 & 100 & 6 & 600 & & & \
\hline 20 & 150 & 7 & 1,050 & & & \
\hline 25 & & & & 200 & 11 & \$ 2,200 \
\hline 30 & 160 & 8 & 1,280 & & & \
\hline & 710 & & \$ 4,330 & 300 & & \$ 3,200 \
\hline
\end{array}$$
- If Santa Fe uses LIFO costing,how much was the Cost of goods sold for the month?

Question

Santa Fe Tile Company had the following inventory purchases and sales during the month of May.The company uses the periodic inventory method. $$\begin{array} { | c | c | c | c | c | c | c | } 
\hline & \text { Purchases } & & & \text { Sales } & & \
\hline \text { Date } & \text { Units } & \text { Unit Cost } & \text { Total } & \text { Units } & \text { Unit Price } & \text { Total } \
\hline \text { May 1 } & 100 & \$ 4 & \$ 400 & & & \
\hline 5 & 200 & 5 & 1,000 & & & \
\hline 10 & & & & 100 & \$ 10 & \$ 1,000 \
\hline 15 & 100 & 6 & 600 & & & \
\hline 20 & 150 & 7 & 1,050 & & & \
\hline 25 & & & & 200 & 11 & \$ 2,200 \
\hline 30 & 160 & 8 & 1,280 & & & \
\hline & 710 & & \$ 4,330 & 300 & & \$ 3,200 \
\hline
\end{array}$$
- If Santa Fe uses LIFO costing,how much was the Cost of goods sold for the month?

Quizplus · Accepted Answer

Under LIFO, the last items purchased are the first to be sold. The sales were 300 units: 200 units from May 30 at $8 each ($1,600) and 100 units from May 20 at $7 each ($700), totaling $2,300.

Santa Fe Tile Company Had the Following Inventory Purchases and Sales