41. Vango, Inc. sells part number 86z to auto parts stores around the world. Inf
ID: 2503909 • Letter: 4
Question
41. Vango, Inc. sells part number 86z to auto parts stores around the world. Information about part number 86Z is contained in the table below. Vango uses a LIFO periodic inventory system.
2000 * 8.0 = 16,000
3,000 * 8.2 = 24,600
5,000 * 8.6 = 43,000
+___________________________
10,000 = 83600
Determine the cost of goods sold and ending inventory value of part 86z, if 4000 units remain unsold at the end of the accounting period
A. Cost of goods sold is $49,200 and ending inventory is $34,400
B. Cost of goods sold is $51,200 and ending inventory is $32,400
C. Cost of goods sold is $34,440 and ending inventory is $49,200
D. Cost of goods sold is $50,160 and ending inventory is $33,440
On June 1, beginning inventory consists of ten items that cost $100 each. On June 8, ten more items are purchased at $120 each. On June 12, fifteen items are sold for $200 each. ON June 28, ten items are purchased at $130 each. Using periodic LIFO, cost of goods sold for the month ended June 30 equals____.
A. $1,800
B. $1,600
C. $1,900
D. $1,950
Explanation / Answer
Since 4000 units remain unsold, 6000 units sell
5000 from last lot and 1000 from previous lot
COGS=cost of 5000 units + cost of previous lot's 1000 units=43000+24600/2=43000+8200=$51200
Ending Inventory=Total Inventory Value-COGS=83600-51200=$32400
Option B is correct
15 items sold on june 12 include 10 items bought on june 28 at $130 each and 5 items as of june 8of $ 120 each
COGS = Cost of 15 items sold on June 12 = 10*130+5*120=$1900
Option C is correct
the calcualtions has been done in this way because it follows a periodic LIFO system
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