CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Date | units | unit price

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?
Correct Answer: $88,000

2/20 Sales - COGS: 2000 x 18 + 500 x 12 = 42,000
11/4 Sales - COGS: 2000 x 23 = 46,000
Total COGS: 88,000

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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