Question
**LIFO** Inventory Costing Methods Gavin Products uses a perpetual inventory system. For 2012 and 2013, Gavin has the following data: Activity Units Purchase Price per
**LIFO** Inventory Costing Methods
Gavin Products uses a perpetual inventory system. For 2012 and 2013, Gavin has the following data:
Activity Units Purchase Price per unit Sale price per unit
2012
Beginning inventory 200 $9
Purchase 1, Feb 15 300 11
Sale 1, Mar. 10 320 $25
Purchase 2, Sept. 15 500 12
Sale 2, Nov. 3 550 25
Purchase 3, Dec. 20 150 13
2013
Sale 3, Apr. 4 200 25
Purchase 4, June 25 200 14
Sale 4, Dec. 18 150 25
Required:
For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using LIFO.
2012 2013
Cost of goods sold $? $?
Cost of ending inventory $? $?
Gross margin $? $?
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