Looking for someone to check my work: 1. $3,700 2. $3,010 3. $15,125 4. $7,350 5

Question

Looking for someone to check my work:

1. $3,700

2. $3,010

3. $15,125

4. $7,350

5. $7,775

Can you please explain what I did wrong if I made any mistakes.

Thank you.

Alpha Company uses the perpetual inventory system and had the following inventory &sales; activity for the month of May 2016 Date Activity Quantity.Unit Price $10 $12 $25 $15 $30 $16 175 200 245 5/1 Beginning Inventory 5/5 Purchase 5/10Sales 5/15 Purchase 5/20 Sales 5/25 Purchase 300 300 150 Using the LIFO method, determine the dollar values following for the month of May: 1. Ending Inventory 2. Goods Available for Sale 3. Sales 4. Cost of Goods Sold 5. Gross Profit

Explanation / Answer

1 Ending inventory = (175-45)*10+(150*16)= $3700 2 Goods available for sale =(175*10)+(200*12)+(300*15)+(150*16)= $11050 3 Sales = (245*25)+(300*30)= $15125 4 Cost of goods sold = 11050-3700= $7350 5 Gross Profit = 15125-7350= $7775 All the answers except goods available for sale are correct

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