A summary of inventory records for Tank Company reveals the following:

During 2019, 35 units were sold at $900 per unit, generating total sales revenue of $31,500.
Required:
a. Determine cost of goods sold, gross profit, and the inventory balance under LIFO method.
b. Determine the LIFO reserve for Tank Company.

Question

A summary of inventory records for Tank Company reveals the following:
 
 During 2019, 35 units were sold at $900 per unit, generating total sales revenue of $31,500.
Required:
a. Determine cost of goods sold, gross profit, and the inventory balance under LIFO method.
b. Determine the LIFO reserve for Tank Company.

Quizplus · Accepted Answer

The Answer of A summary of inventory records for Tank Company reveals the following:
 
 During 2019, 35 units were sold at $900 per unit, generating total sales revenue of $31,500.
Required:
a. Determine cost of goods sold, gross profit, and the inventory balance under LIFO method.
b. Determine the LIFO reserve for Tank Company.

A Summary of Inventory Records for Tank Company Reveals the Following