Question
Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with $70,300 in inventory of its
Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with $70,300 in inventory of its only product. The beginning inventory consisted of the following layers:
4,100 units at $7 per unit | $ | 28,700 | |
5,200 units at $8 per unit | 41,600 | ||
Total | $ | 70,300 | |
During 2018, 6,100 units were purchased at $9 per unit and during 2019, 7,200 units were purchased at $10 per unit. Sales, in units, were 7,200 and 12,400 during 2018 and 2019, respectively.
Required:
1. Calculate cost of goods sold for 2018 and 2019.
2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for 2018 and 2019.
Cost of goods sold: 2018 2019 2019 A LIFO liquidation before-tax 2018 2019
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