Use the following inventory table to find the cost of goods sold using the last-in, first-out (LIFO) inventory method.
Use the following inventory table to find the cost of goods sold using the last-in, first-out (LIFO) inventory method.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
Use the following inventory table to find the cost of goods sold using the last-in, first-out (LIFO) inventory method.
|
Date of purchase
|
Units purchased
|
Cost per unit
|
Retail price per unit
|
|---|---|---|---|
|
Beginning inventory
|
43
|
$860
|
$965
|
|
February 5
|
22
|
$1,760
|
$2,125
|
|
February 9
|
18
|
$965
|
$1,206
|
|
March 3
|
25
|
$470
|
$600
|
|
Units sold
|
77
|
|
The cost of goods sold is $ ___________
Expert Solution
Step 1: Introduction
To calculate the cost of goods sold (COGS) using the Last-In, First-Out (LIFO) inventory method, we assume that the most recently acquired inventory is the first to be sold.
So this is the step
Calculate the cost of the most recent purchases first until you reach the total units sold.
Calculate the cost of goods sold for each purchase using the cost per unit.
Sum up the costs of the goods sold for each purchase to find the total COGS
The total 77 units we have sold so we find the cost till now 77 achived .
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