Homework Help is Here – Start Your Trial Now!
Business
Accounting
E Periodic LIFO

E Periodic LIFO

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

How do I solve this?

**Inventory Calculation Example** **Beginning Inventory:** - Jan. 1 - On hand, 10 units at $20 each **Transactions:** | Purchases | Sales | |-------------------|-----------------| | Jan. 8: 25 units at $23 each | Jan. 4: 8 units @ $75 each | | Jan. 22: 50 units at $26 each | Jan. 15: 20 units @ $75 each | | Jan. 28: 15 units at $29 each | Jan. 26: 52 units @ $75 each | **Task:** Calculate the company's ending inventory on January 31 using *Periodic LIFO*. **Options:** - a. $544 - b. $565 - c. $430 - d. $454 **Explanation:** Using periodic LIFO (Last In, First Out), you will determine the ending inventory by assuming that the last items purchased are the first to be sold. Calculate the value of the remaining inventory by using the costs of the earliest items purchased.
Transcribed Image Text:**Inventory Calculation Example** **Beginning Inventory:** - Jan. 1 - On hand, 10 units at $20 each **Transactions:** | Purchases | Sales | |-------------------|-----------------| | Jan. 8: 25 units at $23 each | Jan. 4: 8 units @ $75 each | | Jan. 22: 50 units at $26 each | Jan. 15: 20 units @ $75 each | | Jan. 28: 15 units at $29 each | Jan. 26: 52 units @ $75 each | **Task:** Calculate the company's ending inventory on January 31 using *Periodic LIFO*. **Options:** - a. $544 - b. $565 - c. $430 - d. $454 **Explanation:** Using periodic LIFO (Last In, First Out), you will determine the ending inventory by assuming that the last items purchased are the first to be sold. Calculate the value of the remaining inventory by using the costs of the earliest items purchased.
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS