Question
In: Accounting
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 agoRelated Solutions
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The following information was collected from the inventory
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Date
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Total Cost
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March 1
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March 5
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$12.00
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Sales
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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
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1,000
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1,200
4.50
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1,400
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600
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9/7
4,200
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10,500
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9/10
5,000
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9/29
6,000
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10,000 units were on hand at the end of
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Required:
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sold for September and September's ending inventory....
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3,000
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10,000
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9/10
4,000
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9/29
5,000
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4
Purchase
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7
Purchase
20
$5.00
10
Sale
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$8.00
12
Sale
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Sales Price
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8
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4
Purchase
18
$6.50
7
Purchase
20
$7.00
10
Sale
(8)
$9.00
12
Sale
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