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

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Question

(a) Determine the cost of goods available for sale.
(b) Determine the (i) cost of ending inventory and (ii) cost of goods sold under FIFO
and LIFO method of cost flow.

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 10 Purchase 95 units at $65
Nov 10 Purchase return 10 units at $65 Nov 28 Sale 35 units at $65
Nov 16 Sale return 10 units at $75
Nov 20 Purchase 50 units at $45
LP Trading uses a periodic inventory system.

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