Use the folkowing information for questions 21-23 XEEPS Toch has the following i

Question

Use the folkowing information for questions 21-23 XEEPS Toch has the following inventory information July 1 Beginning Inventorny July 7 Purchases July 22 Purchases 20 units $19 70 units $20 10 units @ $22 s 380 1 400 $2000 21. A physical count of merchandise invantory on July 31 raveals that there are 30 unts on hand. Using the LIFO inventory method, the amount of goods sold for July is A) 5580 B) $620 C) $1.380 D) $1,420 22. A physical count of merchandise inwerdory on July 31 reveals that there are 30 unts on hand. Using the average-cost method, the ending invenlory is A) $580 B) $800 G) $610 D) $620 hat there 30 u nan 23. A physical count of rmerohandse irrwtory on July 31 reven

Explanation / Answer

Answer to Question No. 21

Units available for Sales = Beginning Inventory + Units Purchased
Units available for Sales = 20 + (70 + 10) = 100 Units
Ending Inventory = 30 Units
Units Sold = 100 – 30
Units sold = 70 Units

Cost of Goods sold using LIFO Inventory Method = (10 * $22) + (60 * $20)
Cost of Goods sold using LIFO Inventory Method = $220 + $1,200
Cost of Goods sold using LIFO Inventory Method = $1,420

Answer to Question No. 22

Units available for Sales = Beginning Inventory + Units Purchased
Units available for Sales = 20 + (70 + 10) = 100 Units
Ending Inventory = 30 Units
Units Sold = 100 – 30
Units sold = 70 Units

Cost of Goods available for Sale = $2,000
Average Cost per Unit = 2,000 / 100 = $20

Cost of Ending Inventory using Average Cost Method = (30 * $20)
Cost of Ending Inventory using Average Cost Method = $600

Answer to Question No. 23

Units available for Sales = Beginning Inventory + Units Purchased
Units available for Sales = 20 + (70 + 10) = 100 Units
Ending Inventory = 30 Units
Units Sold = 100 – 30
Units sold = 70 Units

Cost of Goods sold using FIFO Inventory Method = (20 * $19) + (50 * $20)
Cost of Goods sold using FIFO Inventory Method = $380 + $1,000
Cost of Goods sold using FIFO Inventory Method = $1,380

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