Answer:
The amount allocated to cost of goods sold for July is $2,070.
Step-by-step explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Olympus Climbers Company has the following inventory data:
July 1 Beginning inventory 30 units at $19 $570
7 Purchases 105 units at $20 2100
22 Purchases 15 units at $22 330
$3000
A physical count of merchandise inventory on July 30 reveals that there are 48 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is
The explanation of the answers is now provided as follows:
Last in, first out (LIFO) inventory method refers to a method under which the costs of the costs of the most recent goods purchased or manufactured are expensed first.
Thereforee, the amount allocated to cost of goods sold for July can be calculated as follows:
Total units available for sales = 30 + 105 + 15 = 150 units
Units sold = Total units available for sales - Units on hand on July 30 = 150 - 48 = 102 units
Cost of goods sold for July = Value of 15 units July 22 purchases + (87 units * Cost per units of purchases on July 7) = $330 + (87 * $20) = $330 + $1,740 = $2,070
Therefore, the amount allocated to cost of goods sold for July is $2,070.