On June 1,beginning inventory consists of ten items that cost $100 each.On June 8,ten more items are purchased at $120 each.On June 12,fifteen items are sold for $200 each.On June 28,ten items are purchased at $130 each.Using periodic LIFO,cost of goods sold for the month ended June 30 equals ________.

Question

Quizplus · Accepted Answer

Under periodic LIFO, the last items purchased are the first to be sold. Therefore, the 15 items sold on June 12 consist of 10 items from the June 8 purchase at $120 each and 5 items from the June 1 beginning inventory at $100 each. The cost of goods sold is (10 x $120) + (5 x $100) = $1,200 + $500 = $1,700.

On June 1,beginning Inventory Consists of Ten Items That Cost