W4.The FOX Corporation sells a single product. FOX uses the LIFO method and a pe

Question

W4.The FOX Corporation sells a single product. FOX uses the LIFO method and a periodic inventory system. The following is information on inventory, purchase, and sales for 2016: Sale Price Number of Units Unit Cost January 1, 2016Inventory January 10, 2016 January 1-March 31 April 25, 2016 April 1-June 30 July 10, 2016 July 1-September 30 October 15, 2016 October 1-December 31 Purchase Purchase Purchase 10,000 $3.00 4,000 $3.50 8,000 10,000 $4.00 11,000 6,000 $4.50 3,000 8,000 $5.00 9,000 $5.00 $5.50 $6.00 $6.50 Sales Sales Sales Purchase Sales At the end of 2016, 7,000 units were in its inventory. Compute the COGS expense reported in 2016

Explanation / Answer

COGS schedule is as follows

Jan to March sales = 4000* 3.5 + 4000* 3 = $26,000

April to June Sales = 10000* 4 + 1000*3 = $43000

July to Sep Sales = 3000* 4.5 = $13500

Oct to Dec Sales = 8000*5 + 1000*4.5 = $ 44500

Total Cost of goods sold = $127,000

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.