FFS Clothing Store sells socks. During January 2017, its inventory records for o
ID: 2393995 • Letter: F
Question
FFS Clothing Store sells socks. During January 2017, its inventory records for one particular brand of socks were as follows:
Quantity Price per pair Total
Beginning Inventory 16 pairs $18 = $288
January 6 Purchase 13 pairs $16 = $208
January 10 Sale 15 pairs N/A
January 15 Purchase 18 pairs $15 = $270
January 20 Sale 22 pairs N/A
January 25 Purchase 14 pairs $22 = $308
See information for FFS Clothing Store above. Using this information, perpetual LIFO remaining inventory is
Select one: a. $371 b. $488 c. $586 d. None of these
Explanation / Answer
b. $488
Working:
a. Purchase Sales Inventory in hand Date Quantity Price per pair Total Quantity Price per pair Total Quantity Price per pair Total Beginning Inventory 16 $ 18 $ 288 6-Jan Purchase 13 $ 16 $ 208 16 $ 18 $ 288 13 $ 16 $ 208 10-Jan Sale 13 $ 16 $ 208 2 $ 18 $ 36 14 $ 18 $ 252 15-Jan Purchase 18 $ 15 $ 270 14 $ 18 $ 252 18 $ 15 $ 270 20-Jan 18 $ 15 $ 270 4 $ 18 $ 72 10 $ 18 $ 180 25-Jan 14 $ 22 $ 308 10 $ 18 $ 180 14 $ 22 $ 308 b. Inventory at the end of period: Quantity Price per pair Total 10 $ 18 $ 180 14 $ 22 $ 308 24 $ 488 Under perpetual inventoy method, inventory records are updated as and when transaction takes place. Further, LIFO stands for last in first out.It means inventory which are bought in last will be recorded as sold first.Related Questions
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