Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help i don't understand how to use the FIFO and LIFO methods to find the cost of goods sold and cost of ending inventory
please help i don't understand how to use the FIFO and LIFO methods to find the cost of goods sold and cost of ending inventory
Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation. Tom has inserted hypothetical data into the computer program that tracks inventory on a perpetual basis. Below are the hypotheical data inserted by Tom: Transaction Beginning inventory Purchase, day 1 Sale, day 2 Purchase, day 3 Sale, day 4 Units 10 5 6 8 9 Cost per unit $10 $11 $12 Compute the cost of Goods Sold and Cost of Ending Inventory using the following inventory costing methods: FIFO LIFO FIFO perpetual: Date Day 0 Day 1 Purchases Cost of Goods Sold Balance 10 X $10 = $100 Cost of Goods Sold Balance 10 X $10 = $100 5 X $11 = $55 Day 2 Day 3 8 X $12 = $96 Day 4 Ending LIFO perpetual: Date Day 0 Day 1 Purchases 5 X $11 = $55 Day 2 Day 3 8 X $12 = $96 Day 4 EndingStep 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