Freeman Company Uses the Periodic Inventory System and Applied LIFO

Short Answer

Freeman Company uses the periodic inventory system and applied LIFO inventory costing.At the end of the annual accounting period,December 31,2009,the accounting records in inventory showed $$\begin{array} { l c c } \underline { \text { Transactions } } & \underline { \text { Units } } & \underline { \text { Unit Cost } } \\\hline \text { Beginning inventory, Jan. 1, 2009 } & 300 & \$ 20 \\\text { Purchase, Feb. 1 } & 500 & 21 \\\text { Sale, March } 15 \text { (sold at \$20 each) } & ( 400 ) & \\\text { Purchase, May 15 } & 400 & 22 \\\text { Sale, July } 31 \text { (sold at \$25 each) } & ( 500 ) &\end{array}$$ Calculate the following:
(round to the nearest dollar.)
1.Cost of goods available for sale
2.Ending inventory
3.Cost of goods sold