Assume Radio Tech uses a periodic inventory system and the LIFO cost flow method.
1. Calculate the cost of goods sold that will appear on Radio Tech’s income statement for the month of April.
2. Determine the cost of inventory that will appear on Radio Tech’s balance sheet at the end of April.
Radio Tech Sales & Service, Inc., began the month of April with three top-of-the-line radios in inventory, Model # RD58V6Q; each unit cost $235. During April, nine additional radios of the same model were purchased.
April 9 Purchased three units at $230 each
April 11 Sold five units at $350 each
April 17 Purchased two units at $195 each
April 18 Sold one unit at $350
April 20 Sold two units at $350 each
April 28 Purchased four units at $180each

  • CreatedSeptember 01, 2014
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