The materials account of the XYZ Company reflected the following changes during
ID: 2567810 • Letter: T
Question
The materials account of the XYZ Company reflected the following changes during August:
Balance, August 1
18 units @ $200
Received, August 2
6 units @ $210
Issued, August 8
8 units
Received, August 15
10 units @ $222
Issued, August 27
15 units
Assuming that XYZ Company maintains perpetual inventory records, calculate the cost of the ending inventory at August 31 and the cost of the units issued in August using the LIFO method.
Balance, August 1
18 units @ $200
Received, August 2
6 units @ $210
Issued, August 8
8 units
Received, August 15
10 units @ $222
Issued, August 27
15 units
Explanation / Answer
calculate the cost of the ending inventory at August 31 and the cost of the units issued in August using the LIFO method.
18
6
200
210
3600
1260
6
2
210
200
1260
400
16
10
200
222
3200
2220
10
5
222
200
2220
1000
so cost of unit issued is $4880
Ending inventory $2200
date quantity purchase unit cost Purchase cost quantity issued unit cost issued cost inventory on hand unit cost inventory cost aug 1 18 200 3600 Aug 2 6 210 126018
6
200
210
3600
1260
Aug 86
2
210
200
1260
400
16 200 3200 Aug 15 10 222 222016
10
200
222
3200
2220
Aug 2710
5
222
200
2220
1000
11 200 2200 Total 4880 2200Related Questions
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