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Izzy Company had the following inventory transactions for 2021: Beg Inventory 100 units @ $10 Purchase 5/1 150 units @ $11 Purchase 10/1 200
Izzy Company had the following inventory transactions for 2021: Beg Inventory 100 units @ $10 Purchase 5/1 150 units @ $11 Purchase 10/1 200 units @ $12 Ending Inventory on hand 110 units Also, Izzy had two transactions to consider: (1) Purchase of 100 units on 12/28 for $13. The goods were purchased on account, FOB shipping point. The goods were shipped on 12/28/2021 and arrived on 1/3/2022. (2) Sale of 50 units on 12/29, sold on account for $20 each. The goods were sold FOB shipping point. The goods were shipped on 12/29/2021 and arrived on 1/5/2022. What was ending Inventory for FIFO? If the inventory was sold for the year for $100,000, what was gross profit if Izzy used LIFO?
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Answer A The ending inventory for FIFO would be 110 units at 12 per unit for a total of 1320 B If th...Get Instant Access to Expert-Tailored Solutions
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