LIFO Reserve and LIFO Liquidation
Refer to Practice 9 8. Compute the following:
1. LIFO reserve at the end of Year 4.
2. Cost of goods sold for Year 4.
3. Cost of goods sold for Year 4 assuming that units purchased had been 90 instead of 200.
Practice 9 8
LIFO Layers
The company started business at the beginning of Year 1. Inventory purchases and sales during the first four years of the company’s business are as follows:
|
|
Units |
Cost |
Units |
|
|
Purchased |
per Unit |
Sold |
|
Year 1 |
100 |
$100 |
80 |
|
Year 2 |
150 |
150 |
100 |
|
Year 3 |
150 |
250 |
150 |
|
Year 4 |
200 |
400 |
160 |
Compute the company’s ending inventory as of the end of Year 4. The company uses LIFO inventory valuation.