13.

Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2016 with $67,000 in inventory of its only product. The beginning inventory consisted of the following layers:

5,000 units at $5 per unit		$	25,000
7,000 units at $6 per unit			42,000
Total		$	67,000

During 2016, 7,000 units were purchased at $7 per unit and during 2017, 9,000 units were purchased at $8 per unit. Sales, in units, were 9,000 and 16,000 during 2016 and 2017, respectively.

Required:

1.

Calculate cost of goods sold for 2016 and 2017.

ost of goods sold:
2016
2017

2.	Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for 2016 and 2017.

14.

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016.

Required:

Compute the missing amount.

Cost of goods sold	Freight-in	Ending inventory	Gross Purchases	Sales	Purchase discounts	Beginning inventory	Gross profit	Purchase returns
249	34	159	324	424	?	162	175	62

15.

Shown below is activity for one of the products of Denver Office Equipment:

January 1 balance, 560 units @ $56 $31,360

Purchases:

January 10: 560 units @ $61

January 20: 1,120 units @ $65

Sales:

January 12: 940 units

January 28: 810 units

Required:

Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses LIFO and a perpetual inventory system.

Ending inventory: ?

Cost of goods sold: ?