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16 votes
How do you solve this :(!! Need a chart

How do you solve this :(!! Need a chart-example-1
User ErikAGriffin
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1 Answer

14 votes
14 votes

Answer:

Purchases

Date Qty Unit Cost Total Cost

11 14 $15 $210

21 9 $16 $144

Cost of Sales

Date Qty Unit Cost Total Cost

14

14 $15 $210

6 $16 $96

25

9 $16 $144

5 $16 $80

Total $530

Inventory

Qty Unit Cost Total Cost

9 $16 $144

Total $144

Step-by-step explanation:

LIFO method assumes that the units to arrive last, will be sold first. Also note that the perpetual Inventory method is used. This means the cost of sales and inventory value is calculated after every transaction.

So with LIFO , Cost of Sales will be calculated on recent prices (later prices) whilst Inventory will be valued at earlier prices (old prices).

User Brian McCutchon
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