Question
Lochte, Ltd. has the following units of inventory in stock on December 1, 2019: Lochte uses a periodic inventory system. On December 10, 2019, Lochte
Lochte, Ltd. has the following units of inventory in stock on December 1, 2019:
Lochte uses a periodic inventory system. On December 10, 2019, Lochte purchases 250 units of inventory for $5.40 per unit. On December 11, 2019, Lochte sells 1,000 units of inventory. If the numbers you calculate are not integers, round them to 2 decimal places.
A. Calculate the cost of goods sold from the December 11 sale if Lochte uses the LIFO inventory method.
B. Calculate the cost of goods sold from the December 11 sale if Lochte uses the average cost inventory method.
C. Calculate the carrying value of inventory after the December 11 sale if Lochte uses the LIFO inventory method.
D. Calculate the carrying value of inventory after the December 11 sale if Lochte uses the average cost inventory method.
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