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In: Accounting

Required information [The following information applies to the questions displayed below.] The following are the transactions...

Required information [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 45 $ 10 July 13 Purchase 225 13 July 25 Sold (100 ) $ 15 July 31 Ending Inventory 170 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under LIFO. Assume a periodic inventory system is used.

LIFO (Periodic)
Units Cost per Unit Total
Beginning Inventory 45 $10.00 $450
Purchases
July 13 225 $13.00 2,925
Goods Available for Sale 270
Cost of Goods Sold
Units from Beginning Inventory 45 $10.00
Units from July 13 Purchase 225 $13.00
Total Cost of Goods Sold 3,375
Ending Inventory $3,105
LIFO (Periodic)
Sales
Cost of Goods Sold
Gross Profit

Solutions

Expert Solution

LIFO METHDO - PERIODIC METHOD
COST OF GOODS AVAILABLE FOR SALE COST OF GOODS SOLD CLOSING STOCK
Date Particulars Units Cost Per unit Total Units Cost Per unit Cost of Goods Sold Units Cost Per unit Ending inventory
July.01 Beginning Inventory                          45 $             10.00 $                     450                      45 $         10.00 $                 450
July.13 Purchases                        225 $             13.00 $                  2,925                    100 $         13.00 $             1,300                    125 $         13.00 $             1,625
Total Goods Available For sale                        270 $                  3,375                    100 $             1,300                    170 $             2,075
Answer =
Units Amount
Total Cost of Goods Available for Sales                        270 $             3,375
Total Cost of Goods Sold 100 $             1,300
Ending Inventory 170 $             2,075

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