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Basic Question 2 of 3
Date | units | unit price
2/4 | Purchase: 2,000 | $18
2/20 | Sale: 2,500 | $30
4/2 | Purchase: 3,000 | $23
11/4 | Sale: 2,000 | $33
1/1 | Beginning Inventory: 1,000 | $12
2/4 | Purchase: 2,000 | $18
2/20 | Sale: 2,500 | $30
4/2 | Purchase: 3,000 | $23
11/4 | Sale: 2,000 | $33
What is the cost of goods sold using LIFO under the perpetual inventory system?
User Contributed Comments 3
| User | Comment |
|---|---|
| safash | 500*12??? |
| johntan1979 | If periodic LIFO, 4,500 units sold during period: COGS = 3000 x 23 + 1500 x 18 = $96,000 |
| geofin | "Under a perpetual inventory system, changes in the inventory account are continuously updated. Purchases and sales of goods are recorded directly in inventory as they occur." Page414 of the third volume. |
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Learning Outcome Statements
describe different inventory valuation methods (cost formulas);
calculate and compare cost of sales, gross profit, and ending inventory using different inventory valuation methods and using perpetual and periodic inventory systems;
calculate and explain how inflation and deflation of inventory costs affect the financial statements and ratios of companies that use different inventory valuation methods;
CFA® 2024 Level I Curriculum, Volume 3, Module 22.