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    Cost of goods sold under a LIFO

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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. The solution is NOT $9200. I don't understand how to calculate LIFO.

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    https://brainmass.com/business/lifo/cost-of-goods-sold-under-a-lifo-342213

    Solution Preview

    In the LIFO method the latest units are assumed to be sold first. Thus the cost of goods sold would be the latest ...

    Solution Summary

    The solution explains how to calculate cost of goods sold under a LIFO periodic inventory costing system

    $2.19

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