The following information for Urbanski Corporation relates to the three months ending June 30, 2021: Urbanski uses the LIFO method to account for inventory, and expects at least 15,000 units to be on hand in the ending inventory at year-end. Purchases made in the last six months are expected to cost an average of $18 per unit.Prepare the journal entries to reflect the sales and cost of goods sold, assuming Urbanski expects to maintain 11,000 units in inventory at year-end.

Question

The following information for Urbanski Corporation relates to the three months ending June 30, 2021:   Urbanski uses the LIFO method to account for inventory, and expects at least 15,000 units to be on hand in the ending inventory at year-end. Purchases made in the last six months are expected to cost an average of $18 per unit.Prepare the journal entries to reflect the sales and cost of goods sold, assuming Urbanski expects to maintain 11,000 units in inventory at year-end.

Sanket Sheladiya · Accepted Answer

Final Answer : Journal Entries to Record Sales and Cost of Goods Sold   Excess of replacement cost over historical cost for beginning inventory liquidated:[($18 − $10) × 5,000 units]

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