Asked by Great Amazing on Jul 09, 2024
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Using the table provided, calculate total sales, cost of goods sold, gross profit, and ending inventory using each of the LIFO periodic inventory method.
A) Total sales: $56,975.00 Cost of goods sold: $36,431.25
Gross profit: $20,543.75
Ending inventory: $19,981.2
B) Total sales: $56,975.00 Cost of goods sold: $36,587.50
Gross profit: $20,387.50
Ending inventory: $19,825.00
C) Total sales: $56,975.00 Cost of goods sold: $37,312.50
Gross profit: $19,662.50
Ending inventory: $19,573.25
D) Total sales: $56,975.00 Cost of goods sold: $37,401.75
Gross profit: $19,573.25
Ending inventory: $19,010.75
LIFO Periodic
An inventory management and valuation method where the last items produced or acquired are the first to be expensed as cost of goods sold, calculated at periodic intervals.
Total Sales
The aggregate revenue generated from all goods and services sold by a company within a particular period, serving as a key indicator of the company's financial health and market demand.
Gross Profit
The financial gain made after subtracting the cost of goods sold from total sales revenue.
- Comprehend and compute the different methods of inventory accounting, including FIFO, LIFO, and the Average cost technique.
- Assess the impact of various inventory valuation techniques on the cost of goods sold, finale inventory value, and gross margin.
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Learning Objectives
- Comprehend and compute the different methods of inventory accounting, including FIFO, LIFO, and the Average cost technique.
- Assess the impact of various inventory valuation techniques on the cost of goods sold, finale inventory value, and gross margin.
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