Question
In: Accounting
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual...
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail |
| May 1 | Beginning Inventory | 320 units @ $17 | |
| 5 | Purchase | 305 units @ $19 | |
| 10 | Sales | 225 units @ $27 | |
| 15 | Purchase | 185 units @ $20 | |
| 24 | Sales | 175 units @ $28 | |
Multiple Choice
$7,160
$6,960
$14,935
$7,640
$7,975
Solutions
Expert Solution
Solution :
| Computation of ending inventory COGS under LIFO | ||||||||||||
| Date | Beginning Inventory | Purchase | Cost of Goods Sold | Ending Inventory | ||||||||
| Qty | Rate | Amount | Qty | Rate | Amount | Qty | Rate | Amount | Qty | Rate | Amount | |
| 1-May | 320 | $17.00 | $5,440.00 | 0 | $0.00 | $0.00 | 0 | $0.00 | $0.00 | 320 | $17.00 | $5,440.00 |
| 5-May | 320 | $17.00 | $5,440.00 | 305 | $19.00 | $5,795.00 | 0 | $0.00 | $0.00 | 320 | $17.00 | $5,440.00 |
| 305 | $19.00 | $5,795.00 | ||||||||||
| 10-May | 320 | $17.00 | $5,440.00 | 0 | $0.00 | $0.00 | 225 | $19.00 | $4,275.00 | 320 | $17.00 | $5,440.00 |
| 305 | $19.00 | $5,795.00 | 80 | $19.00 | $1,520.00 | |||||||
| 15-May | 320 | $17.00 | $5,440.00 | 185 | $20.00 | $3,700.00 | 0 | $0.00 | $0.00 | 320 | $17.00 | $5,440.00 |
| 80 | $19.00 | $1,520.00 | 80 | $19.00 | $1,520.00 | |||||||
| 185 | $20.00 | $3,700.00 | ||||||||||
| 24-May | 320 | $17.00 | $5,440.00 | 0 | $0.00 | $0.00 | 175 | $20.00 | $3,500.00 | 320 | $17.00 | $5,440.00 |
| 80 | $19.00 | $1,520.00 | 80 | $19.00 | $1,520.00 | |||||||
| 185 | $20.00 | $3,700.00 | 10 | $20.00 | $200.00 | |||||||
| Total | $7,775.00 | $7,160.00 | ||||||||||
Hence value of ending inventory under LIFO = $7,100
Hence first option is correct.
ekkarill92 answered 2 years agoRelated Solutions
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual...
Salmone Company reported the following purchases and sales of
its only product. Salmone uses a perpetual inventory
system. Determine the cost assigned to the ending inventory using
FIFO.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
May 1
Beginning Inventory
210 units @ $16
5
Purchase
250 units @ $18
10
Sales
170 units @ $26
15
Purchase
130 units @ $19
24
Sales
120 units @ $27
What is the correct answer?
Multiple Choice
$5,530
$4,800
$5,340...
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual...
Salmone Company reported the following purchases and sales of
its only product. Salmone uses a perpetual inventory system.
Determine the cost assigned to ending inventory using LIFO.
DateActivitiesUnits Acquired at CostUnits Sold at Retail
May 1Beginning Inventory340 units @ $19
5Purchase315 units @ $21
10Sales 235 units @ $29
15Purchase195 units @ $22
24Sales 185 units @ $30
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual...
Salmone Company reported the following purchases and sales of
its only product. Salmone uses a perpetual inventory system.
Determine the cost assigned to the ending inventory using FIFO.
Date Activities Units Acquired at Cost Units Sold at Retail
May 1 Beginning Inventory 160 units @ $11
May 5 Purchase 225 units @ $13
May 10 Sales 145 units @ $21
May 15 Purchase 105 units @ $14
May 24 Sales 95 units @ $22
Select one:
a. $3215
b. $3240...
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual...
Salmone Company reported the following purchases and sales of
its only product. Salmone uses a perpetual inventory
system. Determine the cost assigned to cost of goods sold using
FIFO.
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
90 units @ $21.00
Multiple Choice
$2,980
$2,460
$2,850
$2,590
$5,440
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual...
Salmone Company reported the following purchases and sales of
its only product. Salmone uses a perpetual inventory system.
Determine the cost assigned to ending inventory 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 90 units @ $21.00
Multiple Choice $2,980 $2,460 $2,860 $5,440 $2,590
Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual...
Salmone Company reported the following purchases and sales for
its only product. Salmone uses a perpetual inventory
system. Determine the cost assigned to cost of goods sold using
LIFO.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
May 1
Beginning Inventory
230 units @ $18
5
Purchase
260 units @ $20
10
Sales
180 units @ $28
15
Purchase
140 units @ $21
24
Sales
130 units @ $29
Multiple Choice
$6,460
$5,740
$5,950
$6,330
$6,540
Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual...
Salmone Company reported the following purchases and sales for
its only product. Salmone uses a perpetual inventory
system. Determine the cost assigned to cost of goods sold using
LIFO.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
May 1
Beginning Inventory
200 units @ $15
5
Purchase
245 units @ $17
10
Sales
165 units @ $25
15
Purchase
125 units @ $18
24
Sales
115 units @ $26
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual...
Salmone Company reported the following purchases and sales of
its only product. Salmone uses a perpetual inventory
system. Determine the cost assigned to cost of goods sold using
FIFO.
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
90 units @ $21.00
1. Salmone Company reported the following purchases and sales of its only product. Salmone uses a...
1. Salmone Company reported the following purchases and sales of
its only product. Salmone uses a periodic inventory system.
Determine the cost assigned to the ending inventory using FIFO.
Date Activities Units Acquired at Cost Units Sold at Retail May 1
Beginning Inventory 160 units @ $11 5 Purchase 225 units @ $13 10
Sales 145 units @ $21 15 Purchase 105 units @ $14 24 Sales 95 units
@ $22 Multiple Choice $3,215 $3,355 $6,155 $2,940 $2,800
2.
Salmone...
Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic...
Salmone Company reported the following purchases and sales of
its only product. Salmone uses a periodic inventory system.
Determine the cost assigned to ending inventory using
LIFO.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
May 1
Beginning Inventory
260 units @ $11
5
Purchase
275 units @ $13
10
Sales
195 units @ $21
15
Purchase
155 units @ $14
24
Sales
145 units @ $22
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