Hans Inc. is a merchandising company that resells equestrian saddles. The company’s inventory data is as follows: Cost of Goods Available for Sale Jan. 1 Beginning Balance 3 units @ $200 = $600 Jan. 5 Purchase 2 units @ $400 = $800 Jan. 20 Purchase 3 units @ $500 = $1,500 Retail Sales of Goods Jan. 15 Sales 2 units @ $800 = $1,600 Jan. 31 Sales 1 units @ $1,000 = $1,000 For the January 15th sale, the company sold 1 unit that originally cost $200 and 1 unit that cost $400. For the January 31st sale, the 1 unit sold originally had a cost of $500. Using the LIFO method, the cost of goods sold for January would be: Answer formatting -when typing in your answer please include a dollar sign, a comma if necessary, use whole numbers, omit any periods, and make sure your response has no spaces. For example, $1,200
Hans Inc. is a merchandising company that resells equestrian saddles. The company’s inventory data is as follows:
Cost of Goods Available for Sale
|
Jan. 1 |
Beginning Balance |
3 units @ $200 = $600 |
|
Jan. 5 |
Purchase |
2 units @ $400 = $800 |
|
Jan. 20 |
Purchase |
3 units @ $500 = $1,500 |
Retail Sales of Goods
|
Jan. 15 |
Sales |
2 units @ $800 = $1,600 |
|
Jan. 31 |
Sales |
1 units @ $1,000 = $1,000 |
For the January 15th sale, the company sold 1 unit that originally cost $200 and 1 unit that cost $400. For the January 31st sale, the 1 unit sold originally had a cost of $500.
Using the LIFO method, the cost of goods sold for January would be:
Answer formatting -when typing in your answer please include a dollar sign, a comma if necessary, use whole numbers, omit any periods, and make sure your response has no spaces. For example, $1,200
Step by step
Solved in 2 steps with 1 images
