A company’s inventory records report the following in November
of the current year: Beginning November 1...
Free
90.2K
Verified Solution
Link Copied!
Question
Accounting
A company’s inventory records report the following in Novemberof the current year: Beginning November 1 6 units @ $6 PurchaseNovember 2 12 units @ $8 Purchase November 12 8 units @ $10 OnNovember 8, it sold 14 units for $36 each. Using the LIFO perpetualinventory method, what was the amount recorded in the cost of goodssold account for the 14 units sold?
Answer & Explanation
Solved by verified expert
4.1 Ratings (828 Votes)
Perpetual LIFO :
Goods Purchased
Cost of goods sold
Inventory Balance
Date
NO of units
Cost per unit
No of units
Cost per unit
Cost of goods sold
No of units
Cost per unit
Inventory Balance
01-Nov
6
$ 6.00
6
$ 6.00
$
36.00
02-Nov
12
$ 8.00
6
$ 6.00
$
36.00
12
$ 8.00
$
96.00
08-Nov
12
$ 8.00
$
96.00
0
$ 8.00
$
-
2
$ 6.00
$
12.00
4
$ 6.00
$
24.00
12-Nov
8
$ 10.00
4
$ 6.00
$
24.00
8
$ 10.00
$
80.00
14
$
108.00
12
$
104.00
Cost of Goods sold for 14 Units = $108
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
