A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 340 units. Ending inventory at January 31 totals 140 units. Units Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Unit Cost $ 2.90 3.10 3.24 310 70 100 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance # of units sold Cost per unit Cost of Goods Sold # of Cost per unit Cost per unit Inventory Balance Date # of units units January 1 January 9 January 25 January 26 Totals
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 340 units. Ending inventory at January 31 totals 140 units. Units Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Unit Cost $ 2.90 3.10 3.24 310 70 100 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance # of units sold Cost per unit Cost of Goods Sold # of Cost per unit Cost per unit Inventory Balance Date # of units units January 1 January 9 January 25 January 26 Totals
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12E: Alternative Inventory Methods Park Companys perpetual inventory records indicate the following...
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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
340 units. Ending inventory at January 31 totals 140 units.
Units
310
70
Unit Cost
Beginning inventory on January 1
Purchase on January 9
Purchase on January 25
$ 2.90
3.10
3.24
100
Required:
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on
LIFO.
Perpetual LIFO:
Goods purchased
Cost of Goods Sold
Inventory Balance
# of
# of
Cost per
Cost per
Cost of
Cost per
Inventory
Balance
Date
units
# of units
units
unit
unit
Goods Sold
unit
sold
January 1
January 9
2$
January 25
January 26
Totals](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb034729f-db63-4235-9b33-79c3c77be50a%2F702cca87-ce49-4a77-a5d2-fcda64b466b7%2Ftgofuer_processed.png&w=3840&q=75)
Transcribed Image Text:A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells
340 units. Ending inventory at January 31 totals 140 units.
Units
310
70
Unit Cost
Beginning inventory on January 1
Purchase on January 9
Purchase on January 25
$ 2.90
3.10
3.24
100
Required:
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on
LIFO.
Perpetual LIFO:
Goods purchased
Cost of Goods Sold
Inventory Balance
# of
# of
Cost per
Cost per
Cost of
Cost per
Inventory
Balance
Date
units
# of units
units
unit
unit
Goods Sold
unit
sold
January 1
January 9
2$
January 25
January 26
Totals
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