Question

# 1. A company made the following merchandise purchases and sales during the current month: July 1...

1. A company made the following merchandise purchases and sales during the current month:

July 1 purchased 380 units at \$15 each

July 5 purchased 270 units at \$20 each

July 9 sold 400 units at \$60 each

July 14 purchased 300 units at \$24 each

July 20 sold 350 units at \$60 each

July 30 purchased 250 units at \$30 each

There was no beginning inventory.

What is the Cost of Goods Sold for each sale under FIFO, LIFO and Weighted Average

 date of sale units sold FIFO LIFO WEIGHTED AVERAGE july 9 400 380x\$15+20x\$20=\$6100 270x\$20+130x\$15=\$7350 400x\$21.5=\$8600 july 20 350 250x\$20+100x\$24=\$7400 300x\$24+50x\$20=\$8200 350x\$21.5=\$7525 total cost of goods sold \$13500 \$15550 \$16125

1.weighted average cost per unit =(380x\$15+270x\$20+300x\$24+250x\$30)/1200 units=\$21.5

2.under FIFO method,the items will sell on first in first out basis,hence cost of goods sold will contain cost of items of first purchase and then subsequent purchase and in LIFO method it is just oposit to FIFO method

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