Digitrex sold 700 units in September. Calculate the cost of ending inventory and the cost of goods sold for the month of September using the last-in, first-out (LIFO) method.

Ending inventory $9,000

Cost of goods sold $19,500.

Explanation:

Calculation for the cost of ending inventory and the cost of goods sold for the month of September using the last-in, first-out (LIFO) method

Calculation for the ENDING INVENTORY

First step is to calculate the Beginning Inventory

Beginning Inventory=200 Units x $20

Beginning Inventory= $4,000

Second Step is to calculate Purchase

Purchase=200 Units x $25

Purchase= $5,000

Last step is to calculate the Ending Inventory

Ending Inventory=4,000+5,000

Ending Inventory=$9,000

Therefore Ending Inventory will be $9,000

Calculation for COST OF GOODS SOLD

First step is to calculate Sep. 25 Purchase

Purchase=400 Units x $30

Purchase = $12,000

Second Step is to calculate Sep. 18 Purchase

Purchase=(500 units -200 units) ×$25

Purchase=300 Units x $25

Purchase= $7,500

Last Step is to calculate Cost of Goods Sold

Cost of Goods Sold=$12,000+$7,500

Cost of Goods Sold= $19,500

Therefore Cost of Goods Sold will be $19,500

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