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umka2103 [35]
3 years ago
13

Sabre uses the LIFO method of valuing inventory. On October 31, they sold 175 shredders. Find the cost of goods sold. Enter your

answer in currency format and round to the nearest cent.
Date Units received Unit cost
Oct 1 150 $35.02
Oct 10 75 $33.78
Oct 20 75 $32.97
Mathematics
2 answers:
Tamiku [17]3 years ago
7 0

Answer: The cost of goods sold= 5881.75


Step-by-step explanation:

Cost of available  goods = 75x32.97 + 75x33.78 + 150x35.02= $10259.25

Units available= 150 + 75 + 75= 300

Sold units= 175

Ending  inventory= 300-175=125

Value of ending inventory= 125x35.02= $4377.5

Cost of goods sold= cost of available goods – value of ending inventory

Cost of goods sold= 10259.25 – 4377.5= $5881.75


horrorfan [7]3 years ago
7 0

<u>Answer:</u>

Cost of goods sold = $5881.8

<u>Step-by-step explanation:</u>

We know that,

the total number of sold units = 175,

the total number of units received = 150 + 75 + 75 = 300

the total cost of the available goods = (150 * 35.02) + (75 * 33.78) + (75 * 32.97)

= $10259.25

Ending inventory = 300 - 175 = 125

Worth of the ending inventory =  125 x 35.02 = $4377.5

So the cost of good sold will be = 10259.25 – 4377.5 = $5881.8


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