Oriola has the following inventory information. July 3 Beginning Inventory 15 units at $18 $270 7 Purchases 75 units at $20 1500 22 Purchases 5 units at $24 120 $1890 A physical count of merchandise inventory on July 31 reveals that there are 40 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is ? $1120. ? $1077. ? $1096. ? $1070.
Added by Edward B.
Close
Step 1
Beginning Inventory: 15 units at $18 = $270 Purchases: 75 units at $20 = $1500 Purchases on July 22: 5 units at $24 = $120 Total Inventory Cost = $1890 Cost of Goods Available for Sale = Beginning Inventory + Purchases + Purchases on July 22 Cost of Goods Show more…
Show all steps
Your feedback will help us improve your experience
Willis James and 89 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
A company just starting business made the following four inventory purchases in June: June 1 150 units $ 390 June 10 200 units 585 June 15 200 units 630 June 28 150 units 510 $ 2,115 A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is:________ a. $683. b. $825. c. $1,290. d. $1,432.
Jonathan T.
Compute FIFO and LIFO cost of goods sold and ending inventory under the perpetual inventory system. June 1 Beg. Balance 300 units @ $10 = $3,000 June 10 Sold 200 units @ $24 June 11 Purchased 800 units @ $12 = 9,600 June 15 Sold 500 units @ $25 June 20 Purchased 500 units @ $13 = 6,500
Brooke B.
Beginning inventory, purchases, and sales for Item ProX2 are as follows: Jan 1 Inventory 50 units at $15.00 7 Sale 44 units 15 Purchase 90 units at $18.00 24 Sale 40 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 24 and (b) the inventory on January 31.
Rahul M.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD