3. LP Trading had a beginning inventory on November 1 of 45 units of goods at a cost of $50 per unit. During the year, the following purchases, purchase returns, sales and sales returns were made. Nov 05 Sale 30 units at $85 Nov 15 Sale 65 units at $75 Nov 07 Sale return 5 units at $85 Nov 16 Sale return 10 units at $75 Nov 10 Purchase 95 units at $65 Nov 20 Purchase 50 units at $45 Nov 10 Purchase return 10 units at $65 Nov 28 Sale 35 units at $65 LP Trading uses a periodic inventory system.

3. LP Trading had a beginning inventory on November 1 of 45 units of goods at a cost of $50 per unit. During the year, the following purchases, purchase returns, sales and sales returns were made. Nov 05 Sale 30 units at $85 Nov 15 Sale 65 units at $75 Nov 07 Sale return 5 units at $85 Nov 16 Sale return 10 units at $75 Nov 10 Purchase 95 units at $65 Nov 20 Purchase 50 units at $45 Nov 10 Purchase return 10 units at $65 Nov 28 Sale 35 units at $65 LP Trading uses a periodic inventory system.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except: Multiple Choice LIFO method. FIFO method. Specific identification method. Weighted average method. Retail method.
Define the term inventory costs.
Calculate the value of ending inventory and cost of goods sold
Ending inventory is added to Total Goods Available for Sale when computing for Cost of Goods Sold. True False
Define Cost of goods sold at normal and Cost of goods sold at actual.
You have the following information for Wildhorse Gems. Wildhorse uses the periodic system of accounting for its inventory transactions. Wildhorse only carries one brand and size of diamonds-all are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost. March 1 March 31 March 5: March 10- March 25 Beginning inventory 150 diamonds at a cost of $320 per diamond. Purchased 200 diamonds at a cost of $360 each. Sold 180 diamonds for $630 each. Purchased 350 diamonds at a cost of $385 each. Sold 395 diamonds for $680 each.
Question: Explain the First-In, First-Out (FIFO) method used for determining COGS and Ending Inventory cost.
Differentiate between the specific identification, FIFO, LIFO, and average cost methods used to determine the cost of ending inventory and cost of goods sold.
Identify four inventory costing methods for assigning cost to ending inventory and cost of goods sold and briefly explain the difference in the methods.
fifo and lifo for cost of goods sold and cost of ending inventory