Tenace Corporation uses a periodicinventory system and has provided the following information about one of their laptop computers: DateTransactionNumber of UnitsCost per Unit1/1Beginning inventory100$8005/5Purchase200$9008/10Purchase300$1,00010/15Purchase200$1,050 During the year, 275 laptop computers were sold on 5/8 and 475 laptops were sold on 10/20. What was cost of goods sold using the LIFOcost flow assumption?Group of answer choicesA)$717,500b)$730,000C)$703,125D)$725,500E)None of the above

Computation of the Cost of goods sold using LIFO cost flow assumption is as follows: Units in ending inventory: = 100 + 200 + 300 + 200 - 275 - 475 = 50 Under LIFO 50 units in ending inventory = 25 units from beginning inventory + 25 units from 08/10 purchases = (25 X $800) + (25 X $1,000) = $45,000 *Cost of goods Sold = (Begining Inventory + Purchases - Ending Inventory ) = (100 X $800) + (200 X $900) + (300 X $1000) + (200 X $1050) - $45,000 = $80,000 + ($180,000 +$300,000 + $210,000) - $45,000* =$80,000 + $690,000 - $45,000* =$725,000There is no answer in the above options. Answer: E None of the above

Answered: Tenace Corporation uses a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Tenace Corporation uses a periodicinventory system and has provided the following information about one of their laptop computers:

Date	Transaction	Number of Units	Cost per Unit
1/1	Beginning inventory	100	$800
5/5	Purchase	200	$900
8/10	Purchase	300	$1,000
10/15	Purchase	200	$1,050

During the year, 275 laptop computers were sold on 5/8 and 475 laptops were sold on 10/20.

What was cost of goods sold using the LIFOcost flow assumption?

Group of answer choices

A)$717,500

b)$730,000

C)$703,125

D)$725,500

E)None of the above

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