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Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory The company began 2013 with inventory of 6800 units of its only product The beginning inventory

Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2013 with inventory of 6,800 units of its only product. The beginning inventory balance of $97,600 consisted of the following layers:

 

         
2,800 units at $12 per unit = $ 33,600  
4,000 units at $16 per unit =   64,000  
   


    $ 97,600  
   






 

During the three years 2013"?o2015 the cost of inventory remained constant at $18 per unit. Unit purchases and sales during these years were as follows:

 

  Purchases Sales
2013   22,000     24,000  
2014   29,000     31,000  
2015   24,000     25,200  

 

Required:
1. Calculate cost of goods sold for 2013, 2014, and 2015.
 
 
  Cost of goods sold
2013  
2014  
2015  

Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for each of the three years.

 
 
LIFO Liquidation
2013    
2014    
2015    


 

May 14 2020 View more View Less

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