A company purchased 200 units for $20 each on January 31. It purchased 135 units for $30 each on February 28. It sold 200 units for $45 each from March 1 through December 31. If the company uses the last - in, first - out inventory costing method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 31? (Assume that the company uses a perpetual inventory system.) Solution.

1. A company purchased 200 units for $20 each on January 31. It purchased 135 units for $30 each
on February 28. It sold 200 units for $45 each from March 1 through December 31. If the
company uses the last - in, first - out inventory costing method, what is the amount of Cost of
Goods Sold on the income statement for the year ending December 31? (Assume that the
company uses a perpetual inventory system.)
Solution