Calculate cost of goods sold for 2021 and 2022

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Reference no: EM132987027

Question: Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2021 with $89,000 in inventory of its only product. The beginning inventory consisted of the following layers:

5,500 units at $6 per unit$33,000 8,000 units at $7 per unit 56,000 Total$89,000

During 2021, 7,500 units were purchased at $8 per unit and during 2022, 10,000 units were purchased at $9 per unit. Sales, in units, were 10,000 and 18,000 during 2021 and 2022, respectively.

Required:

1. Calculate cost of goods sold for 2021 and 2022.

2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for 2021 and 2022.

Reference no: EM132987027

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