Date Transaction # Of Units Unit Cost Total Cost Jan. 1 Beginning inventory 20 $
ID: 2380099 • 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) Cost Of Goods Sold using the Perpetual FIFO system
COGS = 20*35 + 40*40 =$2300
ii) Ending Inventory using the Perpetual FIFO system
Ending Inventory =10*40= $400
iii)Cost Of Goods Sold using the Perpetual LIFO system
COGS = 50*40 +10*35 =$2350
iv)Ending Inventory using the Perpetual LIFO system
Ending Inventory =10*35 =$350
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