Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1
ID: 2341310 • Letter: E
Question
Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2018, was $792,000 (36,000 units at $22 each). During 2018, 112,000 units were purchased, all at the same price of $30 per unit. 116,000 units were sold during 2018. Esquire uses a periodic inventory system Complete the below table to calculate the December 31, 2018, ending inventory and cost of goods sold for 2018 Cost of Goods Available for Sale COGS Periodic LIFO Ending Inventory - Periodic LIFO # of units Cost per in ending inventory Cost per unit Ending Inventory Cost of Goods | # of units Cost per unit Cost of Goods Sold # of units Available sold unit Beginning Inventory Purchases Total 0 0 0Explanation / Answer
Answer
LIFO
Cost of Goods available for sale
Cost of Goods Sold
Ending Inventory
Units
Cost/unit
COG for sale
Units sold
Cost/unit
COGS
Units
Cost/unit
Ending inventory
Beginning Inventory
36000
$ 22.00
$ 792,000.00
4000
$ 22.00
$ 88,000.00
32000
$ 22.00
$ 704,000.00
Purchases:
112000
$ 30.00
$ 3,360,000.00
112000
$ 30.00
$ 3,360,000.00
0
$ 30.00
$ -
TOTAL
148000
$ 4,152,000.00
116000
$ 3,448,000.00
32000
$ 704,000.00
LIFO
Cost of Goods available for sale
Cost of Goods Sold
Ending Inventory
Units
Cost/unit
COG for sale
Units sold
Cost/unit
COGS
Units
Cost/unit
Ending inventory
Beginning Inventory
36000
$ 22.00
$ 792,000.00
4000
$ 22.00
$ 88,000.00
32000
$ 22.00
$ 704,000.00
Purchases:
112000
$ 30.00
$ 3,360,000.00
112000
$ 30.00
$ 3,360,000.00
0
$ 30.00
$ -
TOTAL
148000
$ 4,152,000.00
116000
$ 3,448,000.00
32000
$ 704,000.00
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