4. On November 1, La cy Company began business with the purchase of 250 units of
ID: 2579906 • Letter: 4
Question
4. On November 1, La cy Company began business with the purchase of 250 units of inventory for $21,625. During the month, Lacy had the following inventory transactions Date November 6 Purchased 100 units $75 per unit 24 28 30 Sold 200 units Sold 85 units Purchased 100 units $125 per unit Purchased 50 units @ $110 per unit Sold 100 units Required: Compute the cost of the inventory at the end of November under the following alternativ a. FIFO periodic b. FIFO perpetual c. LIFO periodic d. LIFO perpetual e. Weighted average (round unit costs to 2 decimal places) f. Moving average (round unit costs to 2 decimal places)Explanation / Answer
FIFO PERIODIC Total Units Purchased 250+100+100+50 500 Total Units Sold 200+85+100 385 Closing Inventory 500-385 115 Units Per unit Cost of Goods Sold Cost of Goods Sold 11 Nov Sold 200 21625/250=86.50 200*86.50=17300 17,300.00 17 Nov Sold 50 86.5 50*86.50=4325 4,325.00 17 Nov Sold 35 75 35*75=2625 2,625.00 30 Nov Sold 65 75 65*75=4875 4,875.00 30 Nov Sold 35 125 35*125=4375 4,375.00 Total 385 33,500.00 Value of Closing Inventory 115 110 115*110 12650 Purchase Sold Closing (Units) FIFO Perpetual Units Nov-01 Purchased 250 86.50 21,625.00 - - 250.00 Nov-06 Purchased 100 75.00 7,500.00 - - 350.00 Nov-11 Sold - - 200 86.5 17300 150.00 Nov-17 Sold - - 50 86.5 4325 100.00 35 75 2625 65.00 Nov-24 Purchased 100 125.00 12,500.00 0 0 0 165.00 Nov-28 Purchased 50 110.00 5,500.00 - - - 215.00 Nov-30 Sold - - 65 75 4875 150.00 35 125 4375 115.00 Value of Closing Inventory 50 * 110 + 65 * 125 13625
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