Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company began 2021 with inventory of 4,500 units of its only product. The beginning inventory balance of $64,000 consisted of the following layers: 2,000 units at $12 per unit=$24,0002,500 units at $16 per unit= 40,000Beginning inventory $64,000 During the three years 2021–2023 the cost of inventory remained constant at $18 per unit. Unit purchases and sales during these years were as follows: PurchasesSales202110,00011,000202213,00014,500202312,00013,000 Required:1. Calculate cost of goods sold for 2021, 2022, and 2023.

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Description: Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company began 2021 with inventory of 4,500 units of its only product. The beginning inventory balance of $64,000 consisted o

1. 2021: Out of Beginning Inventory 1,000 (11000- 10000) $ 16 $16,000 Out of…

Answered: Cansela Corporation reports inventory…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...

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Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company began 2021 with inventory of 4,500 units of its only product. The beginning inventory balance of $64,000 consisted of the following layers:


2,000 units at $12 per unit	=	$	24,000
2,500 units at $16 per unit	=		40,000
Beginning inventory		$	64,000

During the three years 2021–2023 the cost of inventory remained constant at $18 per unit. Unit purchases and sales during these years were as follows:

	Purchases	Sales
2021	10,000	11,000
2022	13,000	14,500
2023	12,000	13,000

Required:
1. Calculate cost of goods sold for 2021, 2022, and 2023.

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