24. Becker Company has a perpetual inventory system and uses the LIFO method of
ID: 2375910 • Letter: 2
Question
24. Becker Company has a perpetual inventory system and uses the LIFO method of inventory costing. Becker reported the following events during the month of June:
Number of Units
Date
Event
Bought
Sold
Unit Price
June 1
Beginning Inv.
100
$20
3
Purchase
75
$21
5
Sale
50
10
Purchase
140
$22
16
Sale
65
21
Sale
90
25
Purchase
175
$24
30
Sale
120
The cost of goods sold for the June 5th sale is:
$1,000
$1,100
$1,025
$1,050
Number of Units
Date
Event
Bought
Sold
Unit Price
June 1
Beginning Inv.
100
$20
3
Purchase
75
$21
5
Sale
50
10
Purchase
140
$22
16
Sale
65
21
Sale
90
25
Purchase
175
$24
30
Sale
120
Explanation / Answer
Hi,
Please find the answer as follows;
COGS = 50*21 = 1050 (Items purchased on 3rd june sold first as it was the latest quantity bought by the company.
Option D (1050) is correct.
Thanks.
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