Use this information to answer the following question. $\begin{array}{ll}
\text { Beginning inventory } & 100 \text { units @\$8.00 } \
\text { Purchase-Oct. } & 200 \text { units } @ \$ 6.00 \
\text { Purchase-Dec. } & 100 \text { units } @ \$ 12.00
\end{array}$
A periodic inventory system is used; ending inventory is 147 units.
What is cost of goods sold under LIFO?

Question

Use this information to answer the following question. $\begin{array}{ll}
\text { Beginning inventory } & 100 \text { units @\$8.00 } \
\text { Purchase-Oct. } & 200 \text { units } @ \$ 6.00 \
\text { Purchase-Dec. } & 100 \text { units } @ \$ 12.00
\end{array}$
 A periodic inventory system is used; ending inventory is 147 units.
What is cost of goods sold under LIFO?

Quizplus · Accepted Answer

Under LIFO, the last items purchased are the first to be sold. Ending inventory is 147 units, so 53 units are sold from the beginning inventory (100 units @ $8.00) and 200 units from the October purchase (200 units @ $6.00). Cost of goods sold = (100 units @ $12.00) + (100 units @ $6.00) + (53 units @ $8.00) = $2,118.

Use This Information to Answer the Following Question A Periodic Inventory System Is Used; Ending Inventory Is 147