Question

Serenity Books has the following transactions in August related to merchandise inventory.

Aug. 1 Beginning merchandise inventory, 10 books @ \(15 each

3 Sold 3 books @ \)20 each

12 Purchased 8 books @ \(18 each

15 Sold 9 books @ \)20 each

20 Purchased 4 books @ \(20 each

28 Sold 5 books @ \)25 each

b. Determine the cost of goods sold and ending merchandise inventory using the LIFO inventory costing method assuming Serenity Books uses the periodic inventory system.

Short answer

Ending Inventory: $98

Cost of goods sold: $276

Step-by-step solution

Ending inventory using LIFO periodic inventory

Using LIFO, the ending inventory would be valued at historic prices.

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