Question

Charles Corp. has the following inventory information available for the month of December: Date Number of Units Cost per unit December 1 Beginning Inventory 40 $10 December 10 Purchases 50 $17 December 20 Purchases 70 $20 The company sold 155 units in December. Required: Using the above information, fill in the chart below with the amounts that should be reported for total cost of goods sold for December and the cost of ending inventory at Dec 31 under both the LIFO and FIFO cost flow assumptions. Do not include commas or a decimal point in the answers.

Answer 1

Instructions are listed below

Step-by-step explanation:

Giving the following information:

December:

Beginning Inventory 40units at $10

December 10: Purchases 50 units at $17

December 20: Purchases 70 units at $20

The company sold 155 units in December

LIFO (last-in, first-out):

COGS= 70*20 + 50*17 + 35*10= $2,600

Inventory= 5*10= $50

FIFO (first-in, first-out)

COGS= 40*10 + 50*17 + 65*20= $2,550

Inventory= 5*20= $100