Question: Dumpster Diver Co. uses perpetual inventory system. It has the following transactions in 2012: On January 1, Dumpster Diver Co had 50 Emerson dishwashers in

Dumpster Diver Co. uses perpetual inventory system. It has the following transactions in 2012:

  1. On January 1, Dumpster Diver Co had 50 Emerson dishwashers in stock. Each cost $500.
  2. On March 15, Dumpster Diver Co purchased 20 Emerson dishwashers for $12,000 from a supplier, paid $10,000 in cash and the rest was on credit.
  3. On June 15, Dumpster Diver Co purchased 30 Emerson dishwashers for $650 each.
  4. On August 1, Dumpster Diver Co sold 20 Emerson dishwashers for $800 each.
  5. On November 22 during Thanksgiving black Friday sales, Dumpster Diver Co sold 60 Emerson dishwashers for $750 each. Dumpster Diver received $35,000 in cash and the remaining balance would be due within one month.

Assuming that Dumpster Diver uses LIFO. What should be the cost of goods sold in 2012?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!