[The following information applies to the questions displayed below.] A company began January with 7,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Total Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Sales LIFO Beginning Inventory Purchases: Units January 10 January 18 6,000 7,000 13,000 Units 10,000 units were on hand at the end of the month. 3,000 3,000 4,000 10,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Purchases Unit Cost $7 8 Cost of Goods Available for Sale Cost of Goods Available for Sale $ 42,000 Number Cost per of units unit 7,000 $ 6.00 6,000 $ 7.00 7,000 $8.00 20.000 S Total Cost $ 42,000 56,000 $ 98,000 42,000 56,000 140.000 Cost of Goods Sold - Periodic LIFO Number of units sold Cost per unit $ $ $ 6.00 7.00 8.00 Cost of Goods Sold Ending Inventory - Periodic LIFO Number of units in ending inventory Cost per unit $ S $ 6.00 7.00 8.00 Ending Inventory
[The following information applies to the questions displayed below.] A company began January with 7,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Total Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Sales LIFO Beginning Inventory Purchases: Units January 10 January 18 6,000 7,000 13,000 Units 10,000 units were on hand at the end of the month. 3,000 3,000 4,000 10,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Purchases Unit Cost $7 8 Cost of Goods Available for Sale Cost of Goods Available for Sale $ 42,000 Number Cost per of units unit 7,000 $ 6.00 6,000 $ 7.00 7,000 $8.00 20.000 S Total Cost $ 42,000 56,000 $ 98,000 42,000 56,000 140.000 Cost of Goods Sold - Periodic LIFO Number of units sold Cost per unit $ $ $ 6.00 7.00 8.00 Cost of Goods Sold Ending Inventory - Periodic LIFO Number of units in ending inventory Cost per unit $ S $ 6.00 7.00 8.00 Ending Inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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