Question

A company markets a climbing kit and uses the perpetual inventory system to account for its...

A company markets a climbing kit and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during the month of January were as follows:

 January 1 Begining balance of 18 units at \$13 each january 12 Purchased 30 units at \$14 each january 19 Sold 24 units at \$30 selling price each january 20 Purchased 24 units at \$17 each january 27 Sold 27 units at \$30 selling price each

Required: Using the LIFO method of valuation, determine the cost of sales and value of the ending inventory.

Schedule :

 Date Quantity purchase Unit cost Total cost Quantity sold Unit cost Total cost of goods sold Quantity remaining Unit cost Ending inventory Jan 1 18 13 234 Jan 12 30 14 420 18 30 13 14 234 420 Jan 19 24 14 336 18 6 13 14 234 84 Jan 20 24 17 408 18 6 24 13 14 17 234 84 408 Jan 27 24 3 17 14 408 42 18 3 13 14 234 42 Total 786 276

Cost of sale = 786

Ending inventory = 276

Earn Coins

Coins can be redeemed for fabulous gifts.

Need Online Homework Help?

Most questions answered within 1 hours.