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# Lannister Inc. holds 12,000 units of inventory on January 1, 2017, which have the following costs…

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Lannister Inc. holds 12,000 units of inventory on January 1, 2017, which have

the following costs using LIFO (last-in, first-out):

 Inventory Lot Date Units Cost / Unit Total Cost A 4/22/2012 2,000 \$60 \$120,000 F 10/15/2014 4,000 \$84 \$336,000 I 12/22/2016 6,000 \$125 \$750,000

During January 2017, Lannister records the following transactions:

• Sells 7,000 units on January 3.
• Purchases 4,000 units on January 10 at a cost of \$130 per unit.
• Sells 2,000 units on January 12
• Purchases 3,000 units on January 18 at a cost of \$132 per unit.
• Sells 2,000 units on January 25.

In answering the following questions, assume that Lannister uses a perpetual LIFO inventory system. Enter your answers as whole numbers, but do not include a \$ with any of your answers.

1. Using perpetual LIFO, what was Lannister’s cost of goods sold (COGS) for the sale that occurred on January 3? \$
2. Using perpetual LIFO, what Lannister’s cost of goods sold (COGS) for the sale that occurred on January 12? \$
3. Using perpetual LIFO, what was Lannister’s cost of goods sold (COGS) for the sale that occurred on January 25? \$
4. Using perpetual LIFO, what was cost of goods sold (COGS) for the month of January, 2017? \$
5. Compared to your result using periodic LIFO in question 1, is Lannister’s LIFO COGS for January 2017 higher or lower using the perpetual system? Enter H or L.
6. True or false: LIFO COGS may be higher using a perpetual inventory system than a periodic system when inventory costs are steadily increasing over time. Enter T or F.