Sept. 1 Inventory 80 units at $175
10 Sale 65 units
18 Purchase 75 units at $180
27 Sale 70 units
Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30.
Answer:
a. Cost of merchandise sold (September 27): $12,600 = (70 units × $180) b. Inventory, September 30: 15 units @ $175 $2,625 5 units @ $180 900 20 $3,525
