Use the following information for questions 7-10 Date Units Cost Total Units Sol
ID: 2553098 • Letter: U
Question
Use the following information for questions 7-10 Date Units Cost Total Units Sold Sale Price 24,000 Total 1-Mar Beginning Inventory 300 3-Mar Purchase 6-Mar Purchase 12-Mar Sale 19-Mar Purchase 22-Mar Purchase 30-Mar Sale 80 500 $ 85 42,500 100 86 $ 8,600 700 $ 225 $ 157,500 300 $ 87 26,100 200 $ 90 18,000 300 $ 225 $ 67,500 225,000 Total 1,400 119,200 1,000 7) Based on the information above, how many units are available for sale? a. 300 b. 400 c. 1,000 d. 1,400 8) Based on the information above, how many units should be included in ending inventory? a. 300 b. 400 c 1,000 d. 1,400 Based on the information above, what is the cost of goods sold using the weighted average method? 9) a. $34,057 b. $85,142 ?. $86,700 d. $160,710 10) Based on the information above, if we know that ending inventory using the LIFO method is $32,500, what is the gross profit using LIFO? $86,700 b. $138,300 c. $139,858 d. $192,500Explanation / Answer
Answer 7:
Total units available for sale is 1,400 units
Answer 8
Ending Inventory (Units) = Beginning Units + Purchase - Sale = 1400-1000 = 400 Units
Answer 9
Weighted Average Cost per unit = 119,200 / 1,400 = 85.14286
No. of units Sold = 1,000 Units
Cost of Goods Sold = 1000*85.14286 = 85142.86 ~85,142
Answer 10:
Cost of Goods Sold = Beginning Inventory + Purchase - Ending Inventory = 24000 + 95200 - 32500 = 86700
Sales = 1000*225 = 225000
Gross Profit = Sales - Cost of Goods Sold = 225000-86700 = 138300
Purchase Date Units Cost Total 01-03-2018 300 80 24,000 03-03-2018 500 85 42,500 06-03-2018 100 86 8,600 19-03-2018 300 87 26,100 22-03-2018 200 90 18,000 Total 1,400 428 1,19,200Related Questions
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