Calculate the Cost of Goods Sold (COGS) for 120 units sold using the LIFO periodic method, given the following purchase data: Jan 1: 20 units @ 10, Jan 25: 40 units @ 11, Jun 25: 40 units @ 12, Oct 10

Hey Sebastian, good to see you again. Step 1: Identify the total units available for sale and the units sold. Units available for sale: • January 1, 2025: 20 units at 10 • January 25, 2025: 40 units at 11 • June 25, 2025: 40 units at 12 • October 10, 2025: 50 units at 13 Total units available for sale = 20 + 40 + 40 + 50 = 150 units. Units sold = 120 units. Step 2: Calculate the Cost of Goods Sold (COGS) using the LIFO (Last-In, First-Out) periodic method. Under LIFO, the last units purchased are assumed to be the first ones sold. We need to account for 120 units sold, starting from the most recent purchases. • From October 10, 2025 purchase: 50 units at 13 Cost = 50 units × \13/unit = \650 Remaining units to account for = 120 - 50 = 70 units • From June 25, 2025 purchase: 40 units at 12 Cost = 40 units × \12/unit = \480 Remaining units to account for = 70 - 40 = 30 units • From January 25, 2025 purchase: We need 30 units from this layer at 11 Cost = 30 units × \11/unit = \330 Remaining units to account for = 30 - 30 = 0 units Step 3: Sum the costs to find the total COGS. COGS = \650 + \480 + \330 = \1,460 The company's cost of goods sold for the 120 items sold is \1,460 Send me the next one 📸