# [SOLVED] hown below is activity for one of the products of Denver Office Equipment: January 1 balance, 550 units @ \$6…..

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Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 550 units @ \$60 \$33,000 Purchases: January 10: 550 units @ \$65 January 20: 1, 100 units @ \$57 Sales: January 12: 950 units January 28: 800 units Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses LIFO and a perpetual inventory system.

January 1:

Beginning Inventory = 550 units * \$60
Beginning Inventory = \$33,000

January 10:

550 units at \$65 were purchased.

January 12:

950 units were sold which include 550 units from purchases of January 10 and 400 units from Beginning Inventory

Cost of Goods Sold = 550 * \$65 + 400 * \$60
Cost of Goods Sold = \$59,750

January 20:

1,100 units at \$57 were purchased.

January 28:

800 units were sold from purchases of January 20.

Cost of Goods Sold = 800 * \$57
Cost of Goods Sold = \$45,600

Total Cost of Goods Sold = \$59,750 + \$45,600
Total Cost of Goods Sold = \$105,350

Ending Inventory will include 300 units from January 20 Purchases and 150 units from Beginning Inventory

Ending Inventory = 300 * \$57 + 150 * \$60
Ending Inventory = \$26,100

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