The following inventory information for ABC Company is given for the month of November: November 1...

The following inventory information for ABC Company is given
for the month of November:

November 1    Beginning inventory 740 units @ $2.20 cost per unit
November 7    Purchased 400 units @ $6.64 cost per unit
November 15   Sold 500 units
November 19   Purchased 200 units @ $5.14 cost per unit
November 28   Sold 600 units
November 30   Purchased 700 units @ $8.00 cost per unit

Calculate the dollar amount of ending inventory shown on ABC
Company's November 30 balance sheet using the LIFO method.

Solutions

Expert Solution

The dollar amount of ending inventory shown on ABCC ompany's November 30 balance sheet using the LIFO method is $6,128.

Under LIFO method, the goods purchased last are sold first. Therefore, LIFO is known as "Last In First Out". Under this method, the sales is made from recent purchases.

A stores ledger is prepared to ascertain the ending value of inventory.

The ending balances as per stores ledger under LIFO method is 240 units @ $2.20 per unit = $528.00 and 700 units @ $8.00 per unit = $5,600.00

The sum total of the ending inventory is $528.00 + $5,600.00 = $6,128.00

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The Following Information is available for the Tierney Company for the month of November. *On November...

The Following Information is available for the Tierney Company for the month of November. *On November 30, after all transactions have been recorded, the balance in the company's Cash account has a balance of $27,202. *The company's bank statement shows a balance on November 30th of $29,279. *Outstanding checks at November 30 incude check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459. *Included with the bank statement was a credit memo in the amount...

The following information was collected from the inventory records of a company for the month of...

The following information was collected from the inventory records of a company for the month of March, 2010. During March the company sold 90 units of its product at $25 per unit. Date Units Unit Cost Total Cost Beginning inventory March 1 15 $10.00 $150 Purchase March 5 35 $12.00 $420 Purchase March 10 70 $14.00 $980 Purchase March 17 25 $15.00 $375 Determine cost of goods sold under LIFO for the month of March. answer choices: 1285, 640, 1130,...

You are given the following information about Silk Company's inventory for the month of April....

You are given the following information about Silk Company's inventory for the month of April. Purchase Sales Date Units Cost per unit $ Date Units April 1 400 4.00 April 2 300 April 10 1,300 4.10 April 11 1,000 April 25 1,200 4.50 April 29 1,400 April 27 600 4.75 Instruction: Silk uses weighted average perpetual. (a). Calculate the cost of ending inventory and cost of goods sold. (Note: Round the weighted average cost per unit to two decimal...

Larson Company employs a periodic inventory system and reported the following inventory information for the month...

Larson Company employs a periodic inventory system and reported the following inventory information for the month of August: August 1 Beginning inventory 2,600 units @ $27 cost per unit August 6 Sold 1,100 units August 15 Purchased 1,400 units @ $36 cost per unit August 18 Sold 1,500 units August 23 Purchased 900 units @ $29 cost per unit August 26 Purchased 600 units @ $23 cost per unit August 29 Sold 2,300 units August 30 Purchased 1,500 units @...

Q 7. You are given the following information about Silk Company's inventory for the month of...

Q 7. You are given the following information about Silk Company's inventory for the month of April. Purchase Sales Date Units Cost per unit $ Date Units April 1 400 4.00 April 2 300 April 10 1,300 4.10 April 11 1,000 April 25 1,200 4.50 April 29 1,400 April 27 600 4.75 Instruction: Silk uses weighted average perpetual. (a). Calculate the cost of ending inventory and cost of goods sold. (Note: Round the weighted average cost per unit to two...

The following information is taken from the inventory records of the CNB Company for the month...

The following information is taken from the inventory records of the CNB Company for the month of September: Beginning inventory, 9/1/2021 6,300 units @ $11.00 Purchases: 9/7 4,200 units @ $11.60 9/25 10,500 units @ $12.20 Sales: 9/10 5,000 units 9/29 6,000 units 10,000 units were on hand at the end of September. Required: 1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory....

The following information is taken from the inventory records of the CNB Company for the month...

The following information is taken from the inventory records of the CNB Company for the month of September: Beginning inventory, 9/1/2021 7,000 units @ $10.00 Purchases: 9/7 3,000 units @ $11.00 9/25 10,000 units @ $11.50 Sales: 9/10 4,000 units 9/29 5,000 units 11,000 units were on hand at the end of September. Required: 1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory....

Sheridan Company uses a perpetual inventory system. The following information is available for November: Units Purchase...

Sheridan Company uses a perpetual inventory system. The following information is available for November: Units Purchase Price Sales Price Nov. 1 Balance 8 $4.00 4 Purchase 20 $4.50 7 Purchase 20 $5.00 10 Sale (8) $8.00 12 Sale (32) $8.00 Calculate the cost of goods sold and ending inventory under FIFO and Calculate the cost of goods sold and ending inventory under weighted average

Cullumber Company uses a perpetual inventory system. The following information is available for November: Units Purchase...

Cullumber Company uses a perpetual inventory system. The following information is available for November: Units Purchase Price Sales Price Nov. 1 Balance 8 $6.00 4 Purchase 18 $6.50 7 Purchase 20 $7.00 10 Sale (8) $9.00 12 Sale (30) $9.00 Calculate the cost of goods sold and ending inventory under FIFO. (Round answers to 0 decimal places, e.g. 5,275.) FIFO Cost of goods sold $ Ending inventory $ Calculate the cost of goods sold and ending inventory under weighted average....

Inventory Costing Methods—Periodic System Oxendine Company's inventory records for the month of November reveal the following:...

Inventory Costing Methods—Periodic System Oxendine Company's inventory records for the month of November reveal the following: Inventory, November 1 200 units @ $18.00 November 4, purchase 250 units @ $18.50 November 7, sale 300 units @ $42.00 November 13, purchase 220 units @ $18.90 November 18, purchase 150 units @ $19.00 November 22, sale 380 units @ $42.50 November 24, purchase 200 units @ $19.20 November 28, sale 110 units @ $43.00 Selling and administrative expenses for the month were...

Subjects