9:47 Done a edugen.wileyplus.com eyPLUS Exercise 6-7 (Part Level Submission) Lis

Question

9:47 Done a edugen.wileyplus.com eyPLUS Exercise 6-7 (Part Level Submission) Lisa Company had 150 units in beginning inventory at a total cost of $15,000. The company purchased 300 units at a total cest of $39,000. At the end of the year, Lisa had 80 units in ending inventory Your answer is partially correct. Try again Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,2so.) The parts of this question must be completed in onder. This part wiW be available when you complete the part above The parts of this question must be completed in order. This part wiWl be available when you complete the part above The parts of this question must be completed in onder. This part wilW be available when you complete the part above

Explanation / Answer

ANS

OPENING INVENTORY = 150UNITS * $ 100 = $15000

PURCHASES = 300UNITS * $130 = $39000

TOTAL COST = $39000 + $15000 = $54000

AVERAGE COST = $54000 / 450UNITS = $120 PER UNIT

CLOSING INVENTORY = 80 UNITS

COST OF ENDING INVENTORY (AVERAGE COST METHOD) = 80UNITS * $120 = $9600

COST OF GOODS SOLD (AVERAGE COST METHOD) = $54000 - $9600 = $44400

OR

COST OF GOODS SOLD (AVERAGE COST METHOD) = 370UNITS * $120 = $44400

Related Questions

Navigate

• Browse (All)
• Browse 9
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.