Salmone Company reported the following purchases and sales of its only product.
ID: 2337978 • Letter: S
Question
Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to ending inventory using LIFO.
A)$5,174
B)$4,860
C)$10,100
D)$7,880
E)$6,580
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO.
A)$3,900
B)$4,340
C)$4,040
D)$4,705
E)$8,605
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO.
A)$6,155
B)$3,215
C)$2,800
D)$3,355
E)$2,940
Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 310 units @ $16 5 Purchase 300 units @ $18 10 Sales 220 units @ $26 15 Purchase 180 units @ $19 24 Sales 170 units @ $27A)$5,174
B)$4,860
C)$10,100
D)$7,880
E)$6,580
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO.
Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 260 units @ $11 5 Purchase 275 units @ $13 10 Sales 195 units @ $21 15 Purchase 155 units @ $14 24 Sales 145 units @ $22A)$3,900
B)$4,340
C)$4,040
D)$4,705
E)$8,605
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO.
A)$6,155
B)$3,215
C)$2,800
D)$3,355
E)$2,940
Explanation / Answer
Solution 1:
Units in ending inventory = Units available for sale - Unit sold
= (310 + 300 + 180) - (220 + 170) = 400 units
Under LIFO ending inventory will consist of 310 units from begining inventory and 90 units from 5th may purchase
Ending inventory = (310 * $16) + (90*$18) = $6,580
Hence option E is correct.
Solution 2:
Cost of ending inventory = $4,040
Hence option C is correct.
Solution 3:
Cost of goods sold under FIFO = $2,800
Hence option C is correct.
Computation of ending inventory COGS under LIFO Date Beginning Inventory Purchase Cost of Goods Sold Ending Inventory Qty Rate Amount Qty Rate Amount Qty Rate Amount Qty Rate Amount 1-May 260 $11.00 $2,860.00 0 $0.00 $0.00 0 $0.00 $0.00 260 $11.00 $2,860.00 5-May 260 $11.00 $2,860.00 275 $13.00 $3,575.00 0 $0.00 $0.00 260 $11.00 $2,860.00 275 $13.00 $3,575.00 10-May 260 $11.00 $2,860.00 0 $0.00 $0.00 195 $13.00 $2,535.00 260 $11.00 $2,860.00 275 $13.00 $3,575.00 80 $13.00 $1,040.00 15-May 260 $11.00 $2,860.00 155 $14.00 $2,170.00 0 $0.00 $0.00 260 $11.00 $2,860.00 80 $13.00 $1,040.00 80 $13.00 $1,040.00 155 $14.00 $2,170.00 24-May 260 $11.00 $2,860.00 0 $0.00 $0.00 145 $14.00 $2,030.00 260 $11.00 $2,860.00 80 $13.00 $1,040.00 80 $13.00 $1,040.00 155 $14.00 $2,170.00 10 $14.00 $140.00 Total 340 $4,565.00 350 $4,040.00Related Questions
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