Problem #2 Using the same facts as in Problem #2: I copied the facts for your ease. Inventory Purchases: 2/1 800 Units@ $12.50/unit 2/9 900 units @ $13.00/unit 2/17 700 units @ $13.50/unit 2/27 400 units @ $14.00/unit Sales: 2/8 300 Units 2/19 600 Units 2/28 600 units The physical inventory count at February 28th shows 1300 units on hand. Under a perpetual inventory system determine the cost of the inventory on hand at February 28th and the cost of goods sold for February, under the (A) FIFO and (B) LIFO methods.
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To do this, we need to calculate the cost of each batch of units and then sum them up. 2/28: 600 units Cost per unit: $14.00 Total cost: 600 units * $14.00/unit = $8,400.00 2/19: 600 units Cost per unit: $13.50 Total cost: 600 units * $13.50/unit = Show more…
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