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photoshop1234 [79]
3 years ago
6

Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Dete

rmine the cost assigned to cost of goods sold using LIFO.
Date Activities Units Acquired at Cost Units Sold at Retail
May 1 Beginning Inventory 150 units @ $10.00
5 Purchase 220 units @ $12.00
10 Sales 140 units @ $20.00
15 Purchase 100 units @ $13.00
24 Sales 150 units @ $21.00
a. $2,260
b. $3,180
c. $1,860
d. $3,580
e. $2,100
Business
1 answer:
storchak [24]3 years ago
5 0

Answer:

The cost of goods sold using the LIFO menthod is;

d. $3,580

Explanation:

Last in First Out (LIFO) method is an inventory method where the recently purchased good is sold first. This means that when accounting for the cost of goods sold, we use the unit cost of the goods that were purchased recently. In our case;

1 Beginning Inventory 150 units @ $10.00

5 Purchase 220 units @ $12.00

10 Sales 140 units @ $20.00

15 Purchase 100 units @ $13.00

24 Sales 150 units @ $21.00

<em>Step 1: Determine total number of units sold;</em>

Total number of units sold=number of sales on May 24+number of sales on May 10

where;

number of sales on May 24=150 units

number of sales on May 10=140 units

replacing;

Total number of units sold=(150+140)=290 units

Total number of units sold=290 units

<em>Step 2: Determine total cost of goods sold</em>

The first 100 units sold were each sold at $13

The remaining 190 units were each sold at $12

Total cost of goods sold=(100×13)+(190×12)=(1,300+2,280)

Total cost of goods sold=$3,580

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Neko [114]

Answer:

The effect of price change in the raw material needs to be adjusted.

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Explanation:

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Answer:

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Explanation:

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Gregory was talking with tom, his assistant manager, saying, "when i make a decision on which employee to pick to do a project,
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Sergio039 [100]

Answer:

Pure Franchise

Explanation:

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