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Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the time of each
Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the time of each sale, as if it uses a perpetual inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31. The inventorys selling price is $10 per unit.
Transactions | Unit Cost | Units | Total Cost |
---|---|---|---|
Inventory, January 1 | $ 3.50 | 410 | $ 1,435 |
Sale, January 10 | (330) | ||
Purchase, January 12 | 4.00 | 495 | 1,980 |
Sale, January 17 | (280) | ||
Purchase, January 26 | 5.00 | 145 | 725 |
Required:
- Calculate the cost of goods sold and ending inventory for Mojo Industries assuming it applies the LIFO cost method perpetually at the time of each sale.
-
Ending Inventory Cost of Goods Sold
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