Date Transaction # Of Units Unit Cost Total Cost Jan. 1 Beginning inventory 20 $
ID: 2380097 • Letter: D
Question
Date
Transaction
# Of
Units
Unit
Cost
Total
Cost
Jan. 1
Beginning inventory
20
$35
$ 700
Jan. 8
Purchase
50
$40
$2,000
Jan. 15
Sales to customers
60
(i) What amount is reported for Cost Of Goods Sold using the Perpetual FIFO system?
(ii) What amount is reported for Ending Inventory using the Perpetual FIFO system?
(iii) What amount is reported for Cost Of Goods Sold using the Perpetual LIFO system?
(iv) What amount is reported for Ending Inventory using the Perpetual LIFO system?
Date
Transaction
# Of
Units
Unit
Cost
Total
Cost
Jan. 1
Beginning inventory
20
$35
$ 700
Jan. 8
Purchase
50
$40
$2,000
Jan. 15
Sales to customers
60
Explanation / Answer
(i) What amount is reported for Cost Of Goods Sold using the Perpetual FIFO system?
Cost of Good Sold = 20*35 + 40*40 = $2300
(ii) What amount is reported for Ending Inventory using the Perpetual FIFO system?
Ending Inventory = 10*40 = $400
(iii) What amount is reported for Cost Of Goods Sold using the Perpetual LIFO system?
Cost of Good Sold = 50*40 + 10*35 = $2350
(iv) What amount is reported for Ending Inventory using the Perpetual LIFO system?
Ending Inventory = 10*35 = $350
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