Score: 3.59 of 5 pts 3 ot 5 (5 complete l HW Score: 72.95%, 18.24 of 25 pt E6-20
ID: 341933 • Letter: S
Question
Score: 3.59 of 5 pts 3 ot 5 (5 complete l HW Score: 72.95%, 18.24 of 25 pt E6-20 (bookstatic) Queslion Help Assume th an AB Tire Store completed the tolloaing parpetual Inventory transactions for a lIne of tires 0 [Click the Kon to vow the transactions Read the Requirement 2. Compute cost of gcods sold and gross pront using the LIFO Inventory costing method balances ater each traneaction. Once all of the transactions have been entered inte Begn by computing the cost of goods selc ane cost of ending mercnandize ventory using the Liriventory cesting method. Enler the transaclione in cronological crder, calculaling new inventory on har the perpetual record, calculate ne quan tr and total costof merchandise Inventory purchased. Sold·ard on hard at the end ofthe perod. (Enter the oldest inventory layers first) Purchases Cost of Goods Sold Inventory on Hand Total Total Total Mare Info Unit Unit Unit Date Quantity Cost Cost Qatty Cost Cost Quantty Cost May 1 Beginning merchandse ventory 16 üres @ 65 each 10 S T83 8 16 S 6,040 10 S 78 780 14 S 65910 11 Puchasc 23 Salc 26 Purciage 10 tires 78cach 10 S 78 S 700 2SSS 130 14 tiles @ 00 each 1,120 14 S 65$ 910 14 S 1,120 Print Dana $260 S 1,900 5 2,290 650 Compute gross proit using the LIFO Inventory cosirg methcd Gross promt is susing c LIFO Inventory costing cthod using the LIFO Inventory costing mcthodExplanation / Answer
Answer
1. May 1 Opening stock 16 tires @ $ 65 each = $1040
2. Total purchases for the month of May
May 11
10 tires@ $ 78 each
$ 780
May 26
14 tires @ $ 80 each
$ 1120
Total purchases
$ 1900
3. Total Sales for the month of May
May 23
12 tires @ $ 88
$ 1056
May 29
18 tires @ $ 80
$ 1440
Total purchases
$ 2496
4. May 29 closing stock 10 tires @ $65 = $650 (as per LIFO method)
5. Cost of Goods sold = Op.stock + Purchases – Closing stock
= 1040+1900 – 650
= $ 2290
6. Gross Profit = Sales - Cost of Goods Sold
= 2496 – 2290
= $206
May 11
10 tires@ $ 78 each
$ 780
May 26
14 tires @ $ 80 each
$ 1120
Total purchases
$ 1900
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.