Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Lisa Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Lisa had 85 units in ending inventory.
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.)
The cost of the ending inventory
$ FIFO
$ LIFO
$ Average-cost
The cost of goods sold
$ FIFO
$ LIFO
$ Average-cost

Sagot :

anthougo

Answer:

Lisa Company

                                                           FIFO            LIFO      Average-cost

The cost of the ending inventory       $11,050     $8,500      $10,200

The cost of goods sold                    $24,950   $27,500     $25,800

Explanation:

a) Data and Calculations:

Beginning inventory 100 units           $10,000 $100

Purchase of 200 units                         26,000 $130

Total units available for sale = 300 $36,000

Ending inventory - 85 units

Units sold = 215 units

Weighted-average cost per unit = $120 ($36,000/300)

FIFO:

Cost of goods sold = $24,950 ($36,000 - $11,050)

Ending inventory = $11,050 (85 * $130)

LIFO:

Cost of goods sold = $27,500 ($36,000 - $8,500)

Ending inventory = $8,500 (85 * $100)

Weighted-average:

Cost of goods sold = $25,800 (215 * $120)

Ending inventory = $10,200 (85 * $120)

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.