Question 10 On January 1 the Whitehouse St Corporation had 40 units of merchandi
ID: 2513563 • Letter: Q
Question
Question 10
On January 1 the Whitehouse St Corporation had 40 units of merchandise inventory on hand. Each unit had cost the company $32. During January the company made the following purchases: January 8, 50 units at $34 each and January 21, 60 units at $37 each. The company made the following sales in January: January 10, 42 units at $60 each and January 26, 64 units at $60 each. The company uses the LIFO perpetual inventory method. Calculate the cost of the Corporation's merchandise inventory on hand on January 31.
a. $3,784
b. $1,628
c. $3,572
d. $1,416
Explanation / Answer
Calculate cost of merchandise inventory on hand on january 31 :
40
50
32
34
1280
1700
40
8
32
34
1280
272
40
8
60
32
34
37
1280
272
2220
60
4
37
34
2220
136
40
4
32
34
1280
136
Ending inventory = 1280+136 = 1416
so answer is d) $1,416
Date # of units cost per unit purchase cost # of unit Cost per unit cost of goods sold # of units cost per unit ending invenotry Jan 1 40 32 1280 Jan 8 50 34 170040
50
32
34
1280
1700
Jan 10 42 34 142840
8
32
34
1280
272
Jan 21 60 37 222040
8
60
32
34
37
1280
272
2220
Jan 2660
4
37
34
2220
136
40
4
32
34
1280
136
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