Question
In LIFO, while finding out the ending inventory where did 100 units x $24 come from? Also in COGS why is 700 units multiplied twice
In LIFO, while finding out the ending inventory where did 100 units x $24 come from? Also in COGS why is 700 units multiplied twice with different prices?
I need to follow the below question:
The Alpha company uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during the month of July, 2020 are given below:
July 01: Beginning inventory, 625 units @ $32 per unit.
July 18: Inventory purchased, 775 units @ $36 per unit.
July 25: Inventory purchased, 580 units @ $39 per unit.
The Delta company sold 1,375 units during the month of July.
Required: Compute inventory on July 31, 2020 and cost of goods sold for the month of July using following inventory costing methods:
First in, first out (FIFO) method
Last in, first out (LIFO) method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started