The Reuschel Company began 2018 with inventory of 23,000 units at a cost of $6 p

Question

The Reuschel Company began 2018 with inventory of 23,000 units at a cost of $6 per unit. During 2018, 63,000 units were purchased for $7.40 each. Sales for the year totaled 73,500 units leaving 12,500 units on hand at the end of 2018. Reuschel uses a periodi inventory system and the LIFO inventory cost method Required: 1. Calculate cost of goods sold for 2018. 2. Calculate the effect of the LIFO on the income. Complete this question by entering your answers in the tabs below. Required 1Required 2 Calculate cost of goods sold for 2018 Co st of goods sold

Explanation / Answer

1 Under LIFO,Goods purchased last are sold first Cost of goods sold 63000 units @ $7.40 466200 10500 units @ $6 63000 (From beginning inventory) Cost of 73500 units sold 529200

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