Mesa Company's inventory records show the following data for the month of September: $3503.70\begin{array} { l c c } & \underline { \text { Units} } & \underline { \text { Unit Cost } } \\\text { Inventory, September 1 } &100& \$ 3.35 \\\text { Purchases: September8 } & 450 & 3.50 \\\quad\quad\quad\quad\quad\text { September 18 }& 350 & 3.70\end{array}$
A physical inventory on September 30 shows 250 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses LIFO inventory costing and a periodic inventory system.

Question

Mesa Company's inventory records show the following data for the month of September:

3503.70\begin{array} { l c c } & \underline { \text { Units} } & \underline { \text { Unit Cost } } \\\text { Inventory, September 1 } &100& \$ 3.35 \\\text { Purchases: September8 } & 450 & 3.50 \\\quad\quad\quad\quad\quad\text { September 18 }& 350 & 3.70\end{array}

A physical inventory on September 30 shows 250 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses LIFO inventory costing and a periodic inventory system.

Mr.Muhammad Najeeb Qureshi · Accepted Answer

Final Answer :  Ending inventory.   ( 100 \quad ( 100 ( 100   units   × $ 3.35 ) + ( 150 	imes \$ 3.35 ) + ( 150 × $3.35 ) + ( 150   units   × $ 3.50 ) = $ 860 	imes \$ 3.50 ) = \$ 860 × $3.50 ) = $860 Cost of goods sold:   ( 350 \quad ( 350 ( 350   units   × $ 3.70 ) + ( 300 	imes \$ 3.70 ) + ( 300 × $3.70 ) + ( 300   units   × $ 3.50 ) = $ 2 , 345 	imes \$ 3.50 ) = \$ 2,345 × $3.50 ) = $2 , 345

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