Chapter 6 Homework
Inventory Costing: LIFO
Filimonov Inc. has the following information related to purchases and sales of one of its inventory items:
Date Description Units Purchased at Cost Units Sold at Retail
June 1 Beginning inventory 170 units @ $12 = $2,040
9 Purchase 1 250 units @ $18 = $4,500
14 Sale 1 350 units @ $25
22 Purchase 2 300 units @ $20 = $6,000
29 Sale 2 285 units @ $25
Refer to the information for Filimonov Inc. and assume that the company uses a perpetual inventory system.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Required:
Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.
Cost of goods sold $ X
Cost of ending inventory $ X
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For cost of goods sold using the LIFO inventory costing method, apply the following steps:
Step 1: Calculate the cost of goods available for sale for the period.
Step 2: Apply the Inventory costing method recognizing that under LIFO, the most recent purchases (newest costs) are allocated to cost of goods sold.
