Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company
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Question:
Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company started 2018 with $69,000 in inventory of its one product. The initial inventory consisted of the following layers:
4,500 units at $6 per unit | ps | 27,000 | |
6,000 units at $7 per unit | 42,000 | ||
Total | ps | 69,000 | |
During 2018, 6,500 units were purchased at $8 per unit and during 2019, 8,000 units were purchased at $9 per unit. Sales, in units, were 8,000 and 14,000 during 2018 and 2019, respectively.
Required:
1. Calculate the cost of goods sold for 2018 and 2019.
2. Without considering income tax, determine the LIFO liquidation profit or loss, if any, for 2018 and 2019.
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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