MyPie Review Dictionary-Calculator Assignments Gradebook Calendar Hernandez Comp

Question

MyPie Review Dictionary-Calculator Assignments Gradebook Calendar Hernandez Company had the following information for the year ending December 31 Units 360 340 550 290 260 110 Unit Cost $44 Purchase: April 6 Sale: Purchase:July 19 Sale: Purchase: October 10 43 May 4 39 September 9 37 Hernandez uses the perpetual inventory system and the LIFQ method. Required: Using LiFO (a) Compute the cost of ending inventor (b) Compute the cost of aoods sold for the year. Cost of ending investory Coat of goods sold s 0 Clear Undo

Explanation / Answer

(a) Computation of Cost of ending inventory:

= (110 x $37) + (290 -260) x 39 + {360 - (550 - 340)} x 44 = $11,840

(b) Computation of goods sold:

= 340 x 43 + 210 x 44 + 260 x 39 = $34,000

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