A company reports the following beginning inventory and two purchases for the month of January. On...
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A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 390 units. Ending inventory at January 31 totals 150 units. Units Unit Cost $ 3.40 Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 350 80 3.60 110 3.70 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Cost of Goods Sold # of units sold Goods purchased Inventol Balance Cost per unit Cost per Cost of Goods unit # of Cost per unit Inventory Balance Date # of units units Sold January 1 350 @ $ 3.40 = $ 1,190 January 9 80 @ $ 3.60 350 @ $ 3.40 = $ 1,190 80 @ $ 3.60 = 288 $ 1,478 January 25 110 @r $ 3.70 350 @ $ 3.40 = 1,190 80 @ $ 3.60 = 288 110 @ $ 3.70 = 407 1,885 January 26 110 @ $ 3.70 = 407 350 @ $ 3.40 = $ 1,190 80 @ $ 3.60 = 288 80 @ $ 3.60 = 288 @ $ 3.40 = 110 @ $ 3.70 407 Totals $ 695 $ 1,885 %24 %24 %24 %24 %24 %24 A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 390 units. Ending inventory at January 31 totals 150 units. Units Unit Cost $ 3.40 Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 350 80 3.60 110 3.70 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Cost of Goods Sold # of units sold Goods purchased Inventol Balance Cost per unit Cost per Cost of Goods unit # of Cost per unit Inventory Balance Date # of units units Sold January 1 350 @ $ 3.40 = $ 1,190 January 9 80 @ $ 3.60 350 @ $ 3.40 = $ 1,190 80 @ $ 3.60 = 288 $ 1,478 January 25 110 @r $ 3.70 350 @ $ 3.40 = 1,190 80 @ $ 3.60 = 288 110 @ $ 3.70 = 407 1,885 January 26 110 @ $ 3.70 = 407 350 @ $ 3.40 = $ 1,190 80 @ $ 3.60 = 288 80 @ $ 3.60 = 288 @ $ 3.40 = 110 @ $ 3.70 407 Totals $ 695 $ 1,885 %24 %24 %24 %24 %24 %24
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Answer rating: 100% (QA)
Answer Step by Step Explanation Based on the information available in the question we can answer as follows FIFO Method Goods Purchased Cost of goods ... View the full answer
Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
Posted Date:
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