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I have to find the ending inventory and COGS with the LIFO and FIFO methods. The company has four purchases 1,000 units at $10 ea.
I have to find the ending inventory and COGS with the LIFO and FIFO methods.
The company has four purchases
1,000 units at $10 ea. | Beginning Inventory | $10,000 |
1,000 units at $10 ea. | Purchase | $10,500 |
500 units at $11 ea. | Purchase | $5,500 |
1,000 units at $11.25 ea. | Purchase | $11,250 |
Total: 3,500 units | Total: 37,500 |
The ending inventory consists of 500 units, i.e, they sold 3,000 units.
In every video I watch to do this, they do not have leftovers and actually need to take away from other purchases. How can I solve this with 500 units when purchases are larger?
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