111 Verizon 11:30 PM * 29% edugen.wileyplus.com C 1 Gradebook ONON Question Inve
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111 Verizon 11:30 PM * 29% edugen.wileyplus.com C 1 Gradebook ONON Question Inventory irformation for Part 311 of sage Corp discloses the following information for the month of june une 1 Balance 30 u$15 June to Sold 203 units$37 20 hrchased 497 ure, e s20 27 sold um e s41 our answer is incorrect Try again Assuming that the periodic inventory method is uned, compute the cos of goods sold and ending inventory under ( LIFO and ()FFO Cost of Goods Sol Ending Inveno anower is conrect Assuming that the perpebaal invetory method is used and cests are compuned an the me of each wihdrawal whan is the value of the endnygExplanation / Answer
First-in-first-out (FIFO): Material receives first will be issued first. Therefore, the closing inventory will be valued at the most recent price or rate. This is system is appropriate when price decreases.
FIFO table
Dt.
Receive
Sold (cost of goods sold)
Balance
Qty.
Rate $
Amount $
Qty.
Rate $
Amount $
Qty.
Rate $
Amount $
1/6
301
15
4515
10/6
203
15
3045
98
15
1470
11/6
797
18
14346
98
797
15
18
15816
15/6
497
98 at $15 + 399 at $18
8652
398
18
7164
20/6
497
20
9940
398
497
18
20
17104
298
18
5364
100
497
18
20
11740
Answer (FIFO):
Cost of goods sold = 3045 + 8652 + 5364 = $17,061
Ending inventory = $11,740
Last-in-first-out (LIFO): Material receives last will be issued first. Therefore, the closing inventory will be valued at the most earlier price or rate. This is system is appropriate when price increases.
LIFO table
Dt.
Receive
Issue (cost of goods sold)
Balance
Qty.
Rate $
Amount $
Qty.
Rate $
Amount $
Qty.
Rate $
Amount $
1/6
301
15
4515
10/6
203
15
3045
98
15
1470
11/6
797
18
14346
98
797
15
18
15816
15/6
497
18
8946
98
300
15
18
6870
20/6
497
20
9940
98
300
497
15
18
20
16810
298
20
5960
98
300
199
15
18
20
10850
Answer (LIFO):
Cost of goods sold = 3045 + 8652 + 5960 = $17,657
Ending inventory = $10,850
Dt.
Receive
Sold (cost of goods sold)
Balance
Qty.
Rate $
Amount $
Qty.
Rate $
Amount $
Qty.
Rate $
Amount $
1/6
301
15
4515
10/6
203
15
3045
98
15
1470
11/6
797
18
14346
98
797
15
18
15816
15/6
497
98 at $15 + 399 at $18
8652
398
18
7164
20/6
497
20
9940
398
497
18
20
17104
298
18
5364
100
497
18
20
11740
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