From the following. (18-5 to 18-12) calculate the cost of ending inventory and c
ID: 3198566 • Letter: F
Question
From the following. (18-5 to 18-12) calculate the cost of ending inventory and cost of goods sold for LIF?(18-13), F?FO d 8-14), weighted-average (1s-15) methods (make sure to first find total cost to complete the table); ending inventory is 49 units: LU 18-112) Total dollar cost Unit cost $2.00 2.50 3.00 3.25 4.00 4.20 4.40 4.80 Beginning inventory and purchases Units 18-5. Beginning inventory, January I 18-6. April 10 18-7. May 15 18-8. July 22 18-9. August 19 10 12 15 18 20 32 16 , 18-10. September 30 18-11. November 10 18-12. December 15 459Explanation / Answer
Under LIFO method the units purchased earliest will form part of ending inventory.
=>49 units forming part of ending inventory will be as shown below:
Therefore , the cost of ending inventory is $147.75. as per LIFO.
b. Cost of goods sold
number of units of goods sold = opening inventory + purchases - closing inventory
=> 5+ 10 +12 +15+ 18 +20+32+16 -49 =79 units.
In LIFO method the goods forming part of inventory at the ending are deemed to be the ones to be sold first .(i.e goods received on december 31 will be assumed to be sold first, followed goods received on november 10 and so on till the cumulative goods sold reaches 79 units)
accordingly the following units will be deemed to be sold.(along with cost of goods computation).
therefore Cost of goods sold using LIFO method = $345.6.
Date units cumulative units Cost of units Cumulative cost January 1 5 5 5 *$2 =$10 $10 April 10 10 15 10 * $2.5 = $25 $35 May 15 12 27 12 * $3 = $36 $71 July 22 15 42 15 * $3.25 = $48.75 $119.75 August 19 (49 - 42)=7(as only 49 units are there in the ending inventory) 49 7 * $4 = $28 $147.75 Cost of ending inventory $147.75Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.