Asked by Angela Pantoja on Apr 27, 2024
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During July the following purchases and sales were made by Phast Company. There was no beginning inventory. Phast Company uses a perpetual inventory system. Purchases Sales July 340 units @ $14 July 1350 units 1140 units @$152220 units 2020 units @$16\begin{array}{rcrc} & \text { Purchases } & & \text { Sales } \\\text { July } 3 & 40 \text { units @ } \$ 14 & \text { July } 13 & 50 \text { units } \\11 & 40 \text { units } @ \$ 15 & 22 & 20 \text { units } \\20 & 20 \text { units } @ \$ 16 & &\end{array} July 31120 Purchases 40 units @ $1440 units @$1520 units @$16 July 1322 Sales 50 units 20 units
Under the LIFO method the cost of goods sold for each sale is: July 13 July 22 \begin{array} { l r r } & { \text { July 13 } } & \text { July 22 } \\\end{array} July 13 July 22
A) $700$280\begin{array} { l r r } & \$ 700 && \$ 280 \\\end{array}$700$280
B) 710300\begin{array} { l r r } & 710 &&& 300 \\\end{array}710300
C) 750300\begin{array} { l r r } & 750 &&& 300 \\\end{array}750300
D) 800320\begin{array} { l r r } & 800 &&& 320\end{array}800320
LIFO Method
Last In, First Out method; an inventory valuation method where the last items added to inventory are assumed to be sold first.
Cost Of Goods Sold
The straightforward costs associated with producing goods for sale by a company, covering labor and materials.
- Ascertain the cost of products sold through the employment of distinct inventory costing approaches, namely FIFO, LIFO, and the Average Cost method.
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Learning Objectives
- Ascertain the cost of products sold through the employment of distinct inventory costing approaches, namely FIFO, LIFO, and the Average Cost method.
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