The following units of a particular item were available for sale during the calendar year: Inventory 4,100 units at $39 Sale 2,500 units 4,400 units at $45 Sale 5,100 units Purchase 1,900 units at $48 The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated 4. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column. Jan. 1 Apr. 19 June 30 Sept. 2 Nov. 15 Date Jan. 1 Apr. 19 June 30 Sept. 2 Nov. 15 Dec. 31 Purchase Quantity Balances Purchases Unit Cost Total Cost $ Schedule of Cost of Goods Sold LIFO Method Quantity Cost of Goods Sold Unit Cost $ Total Cost $ Quantity Inventory Unit Cost $ Total Cost $ Exhibit
The following units of a particular item were available for sale during the calendar year: Inventory 4,100 units at $39 Sale 2,500 units 4,400 units at $45 Sale 5,100 units Purchase 1,900 units at $48 The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated 4. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column. Jan. 1 Apr. 19 June 30 Sept. 2 Nov. 15 Date Jan. 1 Apr. 19 June 30 Sept. 2 Nov. 15 Dec. 31 Purchase Quantity Balances Purchases Unit Cost Total Cost $ Schedule of Cost of Goods Sold LIFO Method Quantity Cost of Goods Sold Unit Cost $ Total Cost $ Quantity Inventory Unit Cost $ Total Cost $ Exhibit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Step 1: Last in last out method
Last-in, first-out is the method of inventory valuation where the item that came in store lastly will be sold first. This method of inventory is mostly used at the time of high inflation.
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