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    Cost of Goods Sold Using LIFO Periodic Inventory

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    Turk's Toy Trains began 2008 with 1200 toy trains, which cost $9.00 each in its inventory. During the year it made the following inventory purchase of inventory.

    Date Units Purchased Cost per Unit Total Cost
    3/18 500 $9.50 $4,750
    6/4 700 $10.00 $7,000
    8/28 400 $10.50 $4,200
    11/13 900 $11.50 $10,350
    Total 2500 $26,300

    A year end count of ending inventory found that 800 units remained in the company's warehouse on December 31, 2008.

    What was the company's cost of goods sold under a LIFO periodic inventory costing system? Please explain solution in detail.

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    Solution Summary

    Given a set of transactions, this solution illustrates how to compute the cost of goods sold under the LIFO periodic inventory system.