contestada

Beginning inventory, purchases and sales data for tennis rackets are as follows:
Apr. 1 Inventory 12 units at $45
Apr. 11 Purchase 13 units at $47
Apr. 14 Sale 18 units
Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculate merchandise sold and ending inventory using LIFO.
Assume the selling price for the units sold on April 14 was $100.

Respuesta :

anthougo

Answer:

Cost of goods sold = $836

Ending inventory = $315

Explanation:

a) Data and Calculations:

Date     Description    Units  Unit Price  Balance

Apr. 1    Inventory         12         $45       $540

Apr. 11  Purchase          13         $47       $1,151 ($540 + 13 * $47)

Apr. 14 Sale                 (18)      $100        $315 ($7 * $45)

Sales revenue = $1,800 ($100 * 18)

Cost of goods sold = $836 ($47 * 13 + $45 * 5)

Ending inventory = $315  ($7 * $45)

b) Under the LIFO (Last in, First out) inventory valuation method, it is assumed that goods that were purchased closest to the selling date were the ones to be sold while those purchased earlier remain in inventory.

Otras preguntas