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Morgarella [4.7K]
3 years ago
14

Beginning inventory, purchases, and sales data for hammers are as follows:

Business
1 answer:
Maru [420]3 years ago
7 0

Answer:

a) under FIFO

COGS = $461

ending inventory = $120

b) under LIFO

COGS = $491

ending inventory = $90

Explanation:

inventory:

March 3 Inventory 12 units at $15

March 11 Purchase 13 units at $17

March 14 Sale 18 units

March 21 Purchase 9 units at $20

March 25 Sale 10 units

under FIFO COGS:

March 14

Dr Cost of goods sold 282

    Cr Merchandise inventory 282

March 25

Dr Cost of goods sold 179

    Cr Merchandise inventory 179

under LIFO COGS:

March 14

Dr Cost of goods sold 296

    Cr Merchandise inventory 296

March 25

Dr Cost of goods sold 195

    Cr Merchandise inventory 195

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