Phillips Company had the following information for the year ending December 31: Units Unit Cost Beginning inventory. 320 $36 Purchase: April 6 580 39 Sale: May 4 450 Purchase: July 19 400 40 Sale: September 9 500 Purchase: October 10 230 44 Phillips uses the perpetual inventory system and the LIFO method. Required: Using LIFO (a) Compute the cost of ending inventory. (b) Compute the cost of goods sold for the year. Cost of ending inventory Cost of goods sold
Phillips Company had the following information for the year ending December 31: Units Unit Cost Beginning inventory. 320 $36 Purchase: April 6 580 39 Sale: May 4 450 Purchase: July 19 400 40 Sale: September 9 500 Purchase: October 10 230 44 Phillips uses the perpetual inventory system and the LIFO method. Required: Using LIFO (a) Compute the cost of ending inventory. (b) Compute the cost of goods sold for the year. Cost of ending inventory Cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Phillips Company had the following information for the year ending December 31:
Units
Unit Cost
Beginning inventory
320
$36
Purchase:
April 6
580
39
Sale:
May 4
450
Purchase:
July 19
400
40
Sale:
September 9
500
Purchase:
October 10
230
44
Phillips uses the perpetual inventory system and the LIFO method.
Required:
Using LIFO
(a) Compute the cost of ending inventory.
(b) Compute the cost of goods sold for the year.
Cost of ending inventory
Cost of goods sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bf448db-f961-4a11-a3e2-79f748247bbd%2Fb3c541c1-657f-4f64-a60b-01ab221bf0a7%2Fzjbzktf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Phillips Company had the following information for the year ending December 31:
Units
Unit Cost
Beginning inventory
320
$36
Purchase:
April 6
580
39
Sale:
May 4
450
Purchase:
July 19
400
40
Sale:
September 9
500
Purchase:
October 10
230
44
Phillips uses the perpetual inventory system and the LIFO method.
Required:
Using LIFO
(a) Compute the cost of ending inventory.
(b) Compute the cost of goods sold for the year.
Cost of ending inventory
Cost of goods sold
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