Question
ABC company uses LIFO to measure its inventory. The inventory records for the year of 2019 are as follows. Units Unit Cost ($) Beginning Inventory
ABC company uses LIFO to measure its inventory. The inventory records for the year of 2019 are as follows.
| Units | Unit Cost ($) |
Beginning Inventory | 20 | 20 |
Purchase on March 27 | 20 | 25 |
Purchase on May 9 | 40 | 30 |
Purchase on November 17 | 10 | 25 |
|
|
|
Quantity sold | 60 |
|
(1) What is the dollar amount of goods available for sale?
(2) What is ABCs cost of goods sold resulting from the sale of inventory?
(3) Suppose the market price of the inventory is 19 dollars per unit at the end of 2019. Record a journal entry to reflect the write-down of inventory using the rule of Lower of Cost or Market.
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