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A Company Uses the Periodic Inventory System, and the Following

Question 217

Essay

A company uses the periodic inventory system, and the following information is available. All purchases and sales are on credit. The selling price for the merchandise is $11 per unit.
 Units  Unit Cost  Total Cost 6/01 Inventory Balance 30$3$906/06 Purchase 7042806/11 Purchase 4552256/16 Purchase 506300 Goods available 19510956/12 Sale 1006/20 Sale 60 Goods sold 1606/31 Inventory Balance 35\begin{array}{|l|l|r|r|r|}\hline & & \text { Units } & \text { Unit Cost } & \text { Total Cost } \\\hline 6 / 01 & \text { Inventory Balance } & 30 & \$ 3 & \$ 90 \\\hline 6 / 06 & \text { Purchase } & 70 & 4 & 280 \\\hline 6 / 11 & \text { Purchase } & 45 & 5 & 225 \\\hline 6 / 16 & \text { Purchase } & \underline{50} & 6 & 300 \\\hline & \text { Goods available } & \underline{195} & & \underline{1095} \\\hline 6 / 12 & \text { Sale } & 100 & & \\\hline 6 / 20 & \text { Sale } & \underline{60} & & \\\hline & \text { Goods sold } & \underline{160} & & \\\hline 6 / 31 & \text { Inventory Balance } & \underline{35} & &\\\hline \end{array}
Required:
Determine the cost of the ending inventory and the cost of goods sold for June using the LIFO method.

Correct Answer:

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Ending Inventory:
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