QUESTION 2

1. As in problem 1 above, Lannister Inc. holds 12,000 units of inventory on January 1, 2017, which have

   the following costs using LIFO (last-in, first-out):

   Inventory Lot	Date	Units	Cost / Unit	Total Cost
   A	4/22/2012	2,000	$60	$120,000
   F	10/15/2014	4,000	$84	$336,000
   I	12/22/2016	6,000	$125	$750,000

   During January 2017, Lannister records the following transactions:

   • Sells 7,000 units on January 3.
   • Purchases 4,000 units on January 10 at a cost of $130 per unit.
   • Sells 2,000 units on January 12
   • Purchases 3,000 units on January 18 at a cost of $132 per unit.
   • Sells 2,000 units on January 25.

   In answering the following questions, assume that Lannister uses a perpetual LIFO inventory system. Do not include a $ with any of your answers.

   1. Using perpetual LIFO, what was Lannisters cost of goods sold (COGS) for the sale that occurred on January 3?
   2. Using perpetual LIFO, what Lannisters cost of goods sold (COGS) for the sale that occurred on January 12?
   3. Using perpetual LIFO, what was Lannisters cost of goods sold (COGS) for the sale that occurred on January 25?
   4. Using perpetual LIFO, what was cost of goods sold (COGS) for the month of January, 2017?
   5. Compared to your result using periodic LIFO in question 1, is Lannister's LIFO COGS for January 2017 higher or lower using the perpetual system? Enter H or L.
   6. True or false: LIFO COGS may be higher using a perpetual inventory system than a periodic system when inventory costs are steadily increasing over time. Enter T or F.