Help please. Missed thi lecture signment You are the vice president of finance o

Question

Help please. Missed thi lecture

signment You are the vice president of finance of Bridgeport Corporation, a retai below. Cost of Gross ($5 per unit) Goods Sold Margin Schedule 1 $153,100 $141.176 $11,924 147,152 5.948 Sales Schedule 2 153,100 The computation of cost of goods sold in each schedule is based on the cst Units per Unit Cost Total Beginning inventory, January 1 11,000 $4.50 $49.500 9.000 4.60 41,400 7.000 4.70 32.900 4.80 48.000 12.000 4.90 58.800 Purchase. January 10 Purchase, Januery 30 10.000 Purchase. March 17 Jane Torville the president of the corporation, cannot understand how te d Torvlle that the to achedules are based on different assumptions concen of Cost of Goods Sold Ee on,01

Explanation / Answer

Schedule

FIFO

Schedule

LIFO

2)

schedule computing ending inventory:

Under FIFO units acquired first are sold first so ending inventory are left from last purchase .Under LIFO units acquired last are sold first so ending inventory are left from initial balance

Units available for sale :11000+9000+7000+10000+12000=49000

Unit sold :153100 sales /5 = 30620 units

ending inventory : 49000-30620= 18380 units

Schedule

FIFO

Schedule

LIFO

Beginning inventory 49500 49500 Add: Purchase 181100     [41400+32900+48000+58800] 181100 cost of goods available for sale 230600 230600 less:Ending inventory (89424) (83448) Cost of goods sol 141176 147152

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