Turk\'s Toy Trains began 2008 with 1,200 toy trains, which cost $9 each, in its

Question

Turk's Toy Trains began 2008 with 1,200 toy trains, which cost $9 each, in its inventory. During the year, it made the following purchases of inventory:

Date Units Purchased Cost Per Unit total cost
3/18 500 $9.50 $4750
6/4 700 $10.00 $7000
8/28 400 $10.50 $4200
11/13 900 $11.50 $10350
Total 2500 - $26300


A year end count of ending inventory found that 800 units remained in the company's warehouse on Dec 31,2008. What was the company's cost of goods sold under a LIFO periodic inventory costing system?

Explanation / Answer

Total number of goods 3,700.00 37,100.00 avilable for sale Closing Inventory 800.00 Hence , Qty of Goods 2,900.00 sold Closing inventory under LIFO 2500 units costing 26,300 2,500.00 26,300.00 400 units @$9 400.00 3,600.00 Cost of Goods Sold 2,900.00 29,900.00 under LIFO

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