Please help, I've been trying for hours... (homework problem)

[hellosimoni]

Hello! I need help on this homework problem. I've watched YouTube, looked at examples in powerpoints and the textbook but nothing is making sense to me!


Gladstone Company uses a perpetual inventory system. At the end of the annual accounting period, December 31, 2009, the accounting records for the most popular item in inventory showed the following:

Transactions Units Unit Cost
Beginning inventory, January 1, 2009 1,800 $5.00
Transactions during 2009:
a. Purchase, January 30 2,500 $6.20
b. Sale, March 14 ($10 each) (1,450)
c. Purchase, May 1 1,200 $8.00
d. Sale, August 31 ($10 each) (1,900)

Calculate the cost of goods sold and ending inventory for Gladstone Company assuming it uses the LIFO cost method in combination with a perpetual inventory system.

Ending inventory:

Cost of goods sold:

 

[Keyur Desai]

Sale on mar 14 is wholly out of purchases on Jan 30.
So stock left is
1800 @ $5.00 = $9000 (This is opening stock)
(2500-1450)= 1050 @ $6.20 each = $6510 (Left from purchases)
Then,
Purchases on May 1
1200 @ $8 = $9600
Sales on August 31 are 1200 units from last purchases then 700 units from the $6.20 stock of Jan 30 purchases

Ending Inventory
What's left is
1800 @ $5.00 = $9000 (This is STILL left)
350 @ $6.20 = $2170
Total = $11170

I'll leave CoGs for you