Amy-Nay Surplus bean Juty 2016 with 70tsnt that cost 310 each. During the month,

Question

Amy-Nay Surplus bean Juty 2016 with 70tsnt that cost 310 each. During the month, Amm-Na Surpus made the Ellowing purchases at cost: iClck the icon to iewth purchases.) my-Nay Surpks snd 248 tents, aduy ,the andig mencory conasts o 2tema a saa pne at each ten s53 1. Uetermre the tost t gcods scld and encing imentory amcumscr J.ly under the "grage cast H cost and LF) castcund awarage cast par .nr: t two dacimal places. and muno al cther an omta to the nearest dol 2. Expain why coat of greds ldi highet urder LFO. Ee spscric. Requirement ster are the cost "goods sod nd er dng rventory an ourts fr July under the ave: ge cost. FFO cos: nd uF cost ou d verage cost per unt to two deomal ces and ound al Uher amourts to the netrest colar. Ending iivenlury Army-Navy Surplus ''U.nw SIuter"eml Month Ended July 31, 2010 Data Tebe Juy 6 80 tents $155 1.200 0 tants S20- 2C00 $3D Prnt Done Choase trom any ist or enter any rumaer in the inut fes and than contnu to the next queston

Explanation / Answer

1. Cost of goods sold and Ending Inventory for July is as prepared below:

2. UNder LIFO cost of goods sold is the highest beacuse costs are increasing and LIFO assigns the goods purchased last to the cost of goods sold.

3. Income Statement

FIFO Date Explanation Units Unit Cost Cost Jul-01 Opening Inventory 70 10.00 700 Jul-06 Purchased Inventory 80 15.00 1,200 Jul-10 Purchased Inventory 100 20.00 2,000 Jul-25 Purchased Inventory 50 30.00 1,500 Cost of goods available for sale (a) 300 5,400 Cost of goods sold Opening inventory sold 70 10.00 700 Goods purchased on July 6 sold 80 15.00 1,200 Goods purchased on July 10 sold 98 20.00 1,960 248 3,860 Ending Inventory a-b Goods purchased on July 10 2 20.00 40 Goods purchased on July 25 50 30 1500 52 1540 LIFO Date Explanation Units Unit Cost Cost Jul-01 Opening Inventory 70 10.00 700 Jul-06 Purchased Inventory 80 15.00 1,200 Jul-10 Purchased Inventory 100 20.00 2,000 Jul-25 Purchased Inventory 50 30.00 1,500 Cost of goods available for sale (a) 300 5,400 Cost of goods sold Goods purchased on July 25 sold 50 30.00 1,500 Goods purchased on July 10 sold 100 20.00 2,000 Goods purchased on July 6 sold 80 15.00 1,200 Opening inventory sold 18 10.00 180 248 4,880 Ending Inventory a-b Opening Inventory 52 10.00 520 52 520 Weighted Date Explanation Units Unit Cost Cost Jul-01 Opening Inventory 70 10.00 700 Jul-06 Purchased Inventory 80 15.00 1,200 Jul-10 Purchased Inventory 100 20.00 2,000 Jul-25 Purchased Inventory 50 30.00 1,500 Cost of goods available for sale (a) 300 18.00 5,400 Cost of goods sold 248 18.00 4,464 Ending Inventory a-b 52 18 936

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