Number of Units Unlt Cost Date Jan. 1 Apr. 7 Jul. 16 Oct. 6 Transaction Beginnin
ID: 2340210 • Letter: N
Question
Number of Units Unlt Cost Date Jan. 1 Apr. 7 Jul. 16 Oct. 6 Transaction Beginning Inventory Purchase Purchase Purchase 52 132 202 Total Cost $44$ 2,288 6,072 9,898 5,600 46 49 50 498 $ 23,858 For the entire year, the company sells 432 units of inventory for $62 each. value Required information 3.00 points 2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units S/unit # of units | S/unit # of units | $/unit Beginning Inventory Purchases Apr 07 Jul 16 Oct 06 Total Sales revenue Gross profit Hints References eBook & Resources Hint #1Explanation / Answer
Solution:
2) Under LIFO method, the latest units or newest units purchased are sold first
LIFO
Cost of Goods Available for Sale
Cost of Goods Sold
Ending Inventory
# of units
Cost per unit
Cost of Goods Available for sale
# of units
Cost per unit
Cost of goods sold
# of units
$ / Unit
$
Beginning Inventory
52
$44.00
$2,288
52
$44
$2,288
Purchases:
Apr 07
132
$46.00
$6,072
118
$46.00
$5,428
14
$46
$644
Jul 16
202
$49.00
$9,898
202
$49.00
$9,898
0
$49
$0
Oct 06
112
$50.00
$5,600
112
$50.00
$5,600
0
$50
$0
Total
498
$23,858
432
$20,926
66
$2,932
Sales Revenue = 432 Units Sold x $62 = $26,784
Gross Profit = Sales $26,784 – Cost of Goods Sold $20,926 = $5,858
3) Using weighted average cost,
Average Cost
Cost of Goods Available for Sale
Cost of Goods Sold
Ending Inventory
# of units
Average Cost per unit
Cost of Goods Available for sale
# of units
Cost per unit
Cost of goods sold
# of units
$ / Unit
$
Beginning Inventory
52
$2,288
Purchases:
Apr 07
132
$6,072
Jul 16
202
$9,898
Oct 06
112
$5,600
Total
498
$47.9076
$23,858
432
$47.9076
$20,696.08
66
$47.9076
$3,161.92
Sales Revenue = $26,784
Gross Profit = Sales $26,784 – Cost of Goods Sold $20,696 = $6,088
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LIFO
Cost of Goods Available for Sale
Cost of Goods Sold
Ending Inventory
# of units
Cost per unit
Cost of Goods Available for sale
# of units
Cost per unit
Cost of goods sold
# of units
$ / Unit
$
Beginning Inventory
52
$44.00
$2,288
52
$44
$2,288
Purchases:
Apr 07
132
$46.00
$6,072
118
$46.00
$5,428
14
$46
$644
Jul 16
202
$49.00
$9,898
202
$49.00
$9,898
0
$49
$0
Oct 06
112
$50.00
$5,600
112
$50.00
$5,600
0
$50
$0
Total
498
$23,858
432
$20,926
66
$2,932
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