**Inventory Calculation Using LIFO Method****Instruction:**Do not use dollar signs in your answers. If your answer is a negative number, put a minus sign in front.**Question:**What is the balance in ending inventory using a LIFO cost flow when you sell 2,300 units for $18 per unit?**Table Data:**| Date | Source | Units Purchased | Cost Per Unit | Total Cost ||----------|----------------------|-----------------|---------------|------------|| 1/1/2011 | Beginning Inventory | 950 | 14 | 13,300 || 2/1/2011 | Purchase | 800 | 10 | 8,000 || 3/1/2011 | Purchase | 1,500 | 12 | 18,000 |**Total Goods Available for Sale: 3,250 units, Total Cost: 39,300**To solve this:1. **Determine the units sold:** - 2,300 units are sold.2. **Use LIFO method for cost flow:** - Sell the most recent purchases first.3. **Units Sold from the Latest Purchase (1,500 units at $12 each):** - 1,500 units x $12 = 18,0004. **Remaining Units Needed to Reach 2,300:** - 2,300 - 1,500 = 800 units5. **Units Sold from the Purchase on 2/1/2011 (800 units at $10 each):** - 800 units x $10 = 8,0006. **Total Cost of Units Sold:** - 18,000 + 8,000 = 26,0007. **Ending Inventory Calculation:** - Total Cost of Goods Available for Sale: 39,300 - Ending Inventory = Total Cost - Cost of Units Sold - Ending Inventory = 39,300 - 26,000 = 13,3008. **Answer:** - Ending Inventory: 13,300The box in the image seems to indicate an answer related to this calculation, showing "33,400". If this relates to another part of the question, please ensure it aligns with the calculations needed for this scenario. **Instructions:**Do not use dollar signs in your answers. If your answer is a negative number, put a minus sign in front.**Question:**What is Gross Margin using a weighted average cost flow when you sell 2,300 units for $18 per unit?**Table Data:**| Date | Source | Units Purchased | Cost Per Unit | Total Cost ||------------|---------------------|-----------------|---------------|-------------|| 1/1/2011 | Beginning Inventory | 950 | 14 | 13,300 || 2/1/2011 | Purchase | 800 | 10 | 8,000 || 3/1/2011 | Purchase | 1,500 | 12 | 18,000 || | **Total Goods Available for Sale** | **3,250** | | **39,300** |**Explanation:**To find the Gross Margin using a weighted average cost flow method, you first calculate the weighted average cost per unit and then apply it to the units sold.1. **Calculate Weighted Average Cost Per Unit:** \[ \text{Weighted Average Cost Per Unit} = \frac{\text{Total Cost}}{\text{Total Units Purchased}} = \frac{39300}{3250} \]2. **Calculate Cost of Goods Sold (COGS) for 2,300 units:** \[ \text{COGS} = \text{Weighted Average Cost Per Unit} \times 2300 \]3. **Calculate Gross Margin:** \[ \text{Gross Margin} = (\text{Selling Price Per Unit} \times 2300) - \text{COGS} \]Use this method for detailed calculations.

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Description: **Inventory Calculation Using LIFO Method****Instruction:**Do not use dollar signs in your answers. If your answer is a negative number, put a minus sign in front.**Question:**What is the balance in ending inventory using a LIFO cost flow when you s

Lets understand the basics. In LIFO basis company assumes that, goods purchased last are sold first.…

Business

Accounting

What is the balance in ending inventory using a LIFO cost flow when you sell 2,300 units for $18 per unit? Date Source 1/1/2011 Beginning Inventory 2/1/2011 Purchase 3/1/2011 Purchase Total Goods Available for Sale Units Purchased 950 800 1,500 3,250 Cost Per Unit $14 $10 $12 Total Cost $ 13,300 $ 8,000 $ 18,000 $39,300

What is the balance in ending inventory using a LIFO cost flow when you sell 2,300 units for $18 per unit? Date Source 1/1/2011 Beginning Inventory 2/1/2011 Purchase 3/1/2011 Purchase Total Goods Available for Sale Units Purchased 950 800 1,500 3,250 Cost Per Unit $14 $10 $12 Total Cost $ 13,300 $ 8,000 $ 18,000 $39,300

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Given the following: Number purchased Cost per unit Total January 1 inventory 42 $ 3 $ 126 April 1 62 6 372 June 1 52 7 364 November 1 57 8 456 213 $ 1,318 A. Calculate the cost of ending inventory using the weighted-average method (ending inventory shows 63 units). Note: Round the "average unit cost" and final answer to the nearest cent. Cost of ending inventory $389.97 B. Calculate the cost of goods sold using the weighted-average method. Note: Round your intermediate calculations and final answer to the nearest cent. Cost of goods sold $ Please help with B ONLY. I cannot figure out the weighted average method. Thank you!
< FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 20 units at $41 Sale 16 units at $59 First purchase 33 units at $44 Sale 24 units at $61 Second purchase 25 units at $47 Sale 23 units at $62 The firm uses the perpetual ihventory system, and there are 15 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of the ending inventory according to LIFO?
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Suppose that Pharoah has the following inventory data: July 1 Beginning inventory 25 units at $5.00 5 Purchases 101 units at $5.50 14 Sale 67 units 21 Purchases 50 units at $6.00 30 Sale 47 units Assuming that a perpetual inventory system is used, what is the cost of goods sold on a LIFO basis for July? O $650.50 ○ $980.50 O $330.00 O $485.00