Question
During the current period the Professor made the following purchases of lava rocks. Answer the questions below assuming that the Professor uses the LIFO method
During the current period the Professor made the following purchases of lava rocks. Answer the questions below assuming that the Professor uses the LIFO method for inventory costing.
| Purchase 1 = | 200 pounds @ $3.80 per pound = |
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| Purchase 2 = | 250 pounds @ $4.00 per pound = |
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| Total available for sale = |
| |
Perform the multiplication above for each purchase and sum up the Total available for sale.
| What is the total dollar amount available for sale? |
|
What would be the cost of goods sold if 300 pounds of lava rocks were sold using LIFO? Show units and cost per unit.
|
| units @ $ |
| = |
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| units @ $ |
| = |
|
|
|
| = |
| = Total cost of goods sold (COGS) |
| ||
What would be the ending inventory for the remaining pounds of lava rocks? Show units and cost per unit.
|
| units @ $ |
| = |
|
| units @ $ |
| = |
|
|
|
| = |
| = Cost of ending inventory |
| ||
Assume that the Professor made another purchase of lava rocks of 150 pounds @ $4.20 per pound. What would be the total available for sale AFTER this purchase?
| Ending Inventory = |
|
|
| + new purchase = |
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|
| Total available for sale = |
| |
What would be the cost of goods sold if the second sale was for 200 pounds of lava rocks? Show the units and cost per unit.
|
| units @ $ |
| = |
|
| units @ $ |
| = |
|
|
|
| = |
| = Total cost of goods sold (COGS) |
| ||
What would be the ending inventory for the remaining pounds of lava rocks? Show the units and cost per unit.
|
| units @ $ |
| = |
|
| units @ $ |
| = |
|
|
|
| = |
| = Cost of ending inventory |
| ||
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Foundations Of Cost Control
Authors: Daniel Traster
1st Edition
0132156555, 978-0132156554
