A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 360 units. Ending inventory at January 31 totals 130 units. Units Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 320 70 100 Unit Cost $ 3.10 3.30 3.40 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO.

Financial Accounting: The Impact on Decision Makers
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Chapter5: Inventories And Cost Of Goods Sold
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Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...
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A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells
360 units. Ending inventory at January 31 totals 130 units.
Unit Cost
Beginning inventory on January 1
Purchase on January 9
Purchase on January 25
Units
320
70
100
$3.10
3.30
3.40
Required:
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on
LIFO.
Perpetual LIFO:
Goods purchased
Cost of Goods Sold
Inventory Balance
# of
units
sold
Cost per Cost of Goods
unit
# of
Cost per
unit
Cost per
Inventory
Balance
Date
# of units
units
Sold
unit
January 1
January 9
January 25
January 26
Totals
Transcribed Image Text:A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 360 units. Ending inventory at January 31 totals 130 units. Unit Cost Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 320 70 100 $3.10 3.30 3.40 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance # of units sold Cost per Cost of Goods unit # of Cost per unit Cost per Inventory Balance Date # of units units Sold unit January 1 January 9 January 25 January 26 Totals
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