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. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Date Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. January 1 January 9 Total January 9 January 25 Total January 25 January 26 Total January 26 Goods purchased # of units Units 350 80 110 Cost per # of units unit sold Unit Cost $ 3.40 3.60 3.70 Perpetual LIFO: Cost of Goods Sold Cost per unit Cost of Goods Sold # of units Inventory Balance Cost per unit Inventory Balance $ 0
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. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Date Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. January 1 January 9 Total January 9 January 25 Total January 25 January 26 Total January 26 Goods purchased # of units Units 350 80 110 Cost per # of units unit sold Unit Cost $ 3.40 3.60 3.70 Perpetual LIFO: Cost of Goods Sold Cost per unit Cost of Goods Sold # of units Inventory Balance Cost per unit Inventory Balance $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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.
Beginning inventory on January 1
Purchase on January 9
Purchase on January 25
Date
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on
the LIFO method.
January 1
January 9
Total January 9
January 25
Total January 25
January 26
Total January 26
Goods purchased
# of units
Units
350
80
110
Cost per # of units
unit
sold
Unit Cost
$ 3.40
3.60
3.70
Perpetual LIFO:
Cost of Goods Sold
Cost per
unit
Cost of Goods
Sold
# of units
Inventory Balance
Cost per
unit
Inventory
Balance
$
0
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