Requirement 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method.

Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

May 1 Beginning merchandise inventory 11 Purchase 23 Sale 28 tires @ $ 7 tires @ $ 14 tires @ $ 21 tires @ $ 25 tires @ $ 70 each 80 each 86 each 82 each 86 each 26 Purchase 29 Sale Purchases Cost of Goods Sold Inventory on Hand Unit Total Unit Unit Total Total Cost Date Quantity Cost Quantity Cost Cost Quantity Cost Cost May 1 Totals