GTI Company uses a perpetual inventory system. It entered into the following pur
ID: 2539968 • Letter: G
Question
GTI Company uses a perpetual inventory system. It entered into the following purchase and sale transactions for April: Date Activity Units acquired at cost Units sold at retail April 1 beginning inventory 20 units @ $3,000/unit April 5 purchase 30 units @ $3,500/unit April 9 sale 35 units @ $12,000/unit April 18 purchase 5 units @ $4,500/unit April 25 purchase 10 units @ $4,800/unit April 29 sale 25 units @ $14,000/unit TOTALS 65 units 60 units Compute the ending inventory for the month using LIFO: $215,500 $24,000 $20,000 $220,500 $211,500 $15,000
Explanation / Answer
Answer:-The ending inventory for the month using LIFO:-$15000
Explanation:-
LIFO Method Goods purchased Cost of goods sold Inventory balance Date # of units Cost per unit # of units sold Cost per unit Cost of goods sold # of units Cost per unit Inventory balance Apr-01 20 3000 60000 Apr-05 30 3500 20 3000 60000 30 3500 105000 Apr-09 30 3500 105000 15 3000 45000 5 3000 15000 Apr-18 5 4500 15 3000 45000 5 4500 22500 Apr-25 10 4800 15 3000 45000 5 4500 22500 10 4800 48000 Mar-29 10 4800 48000 5 3000 15000 5 4500 22500 10 3000 30000 Totals 60 220500Related Questions
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