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26 September, 08:27

Determine the gross profit using the periodic inventory system and the LIFO inventory method, assuming that 18 units were sold at a sales price of $14. Date Item Units Cost Total January 1 Beginning inventory 5 $3 $15 January 12 Purchase 10 4 40 January 18 Purchase 8 5 40 Totals 23 $95 a.$182 b.$80 c.$172 d.$95

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  1. 26 September, 09:03
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    C) $172

    Explanation:

    total revenue = 18 units x $14 per unit = $252

    cost of goods sold using LIFO method:

    Date Item Units Cost Total

    January 1 Beginning inventory 5 $3 $15

    January 12 Purchase 10 $4 $40

    January 18 Purchase 8 $5 $40

    Totals 23

    COGS = (8 x $5) + (10 x $4) = $40 + $40 = $80

    revenue $252

    - COGS ($80)

    gross profit $172
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