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LIFO QUESTION : I understand how the calculation was done but don't understand WHY I got 03/05 COGS -> 2320(.65)= $ 1508 03/30 COGS ->

LIFO QUESTION: I understand how the calculation was done but don't understand WHY

I got

03/05 COGS -> 2320(.65)= $ 1508

03/30 COGS -> 2580(0.80)+2580(0.72)= $ 3921.6

TOTAL COGS= $ 5429.6

ENDING INVENTORY= 7593.15-5429.6= $ 2163.55

WHY IS THIS WRONG? Realistically, if you go by the dates wouldn't you be selling 2320 liters for $0.65 on March 5th. Then on March 30th you would sell 2580 liters for $0.80 and 2580 liters for 0.72?

I understand what they did to get the 2,076.75 but it it doesn't make any sense to me logically considering the dates, please explain!

image text in transcribed

image text in transcribed

Problem 6-6A (Part Level Submission) You are provided with the following information for Sunland Inc. Sunland Inc. uses the periodic system of accounting for its inventory transactions. March 1 Beginning inventory 1,950 liters at a cost of 60 per liter. March 3 Purchased 2,475 liters at a cost of 65 per liter. March 5 Sold 2,320 liters for $1.10 per liter. March 10 Purchased 3,820 liters at a cost of 72 per liter. March 20 Purchased 2,580 liters at a cost of 80 per liter. March 30 Sold 5,160 liters for $1.25 per liter. Problem 6-6A (Part Level Submission) Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.25.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,320 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 500 liters from March 1; 545 liters from March 3; 2,900 liters from March 10; 1,215 liters from March 20. (2) FIFO (3) LIFO Ending Inventory Specific identification $ 2,420.90 FIFO $ 2,614.80 LIFO $ 2,076.75

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