Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

The Brahms Corp. has the following inventory lots on September 1, 2018. Inventory Lot Date Units Cost / Unit 104 1/16/12 100 $42 Total Cost

image text in transcribed

The Brahms Corp. has the following inventory lots on September 1, 2018. Inventory Lot Date Units Cost / Unit 104 1/16/12 100 $42 Total Cost $4,200 263 8/20/17 200 $60 $12,000 $6,400 312 8/12/18 100 $64 Brahms uses the LIFO (last-in, first-out) cost flow assumption. On September 10, Brahms sells 200 units of inventory at a price of $100 per unit. Unless otherwise noted, your answers should be in whole dollar amounts but without a $ sign. 1. What is the cost of goods sold for Brahms's Sept. 10 sale, using LIFO? $ 2. What is the gross profit realized from the Sept. 10 sale? $ 3. What is the gross profit margin percentage for the Sept. 10 sale? Enter your answer as a percentage, rounded to one decimal place, e.g., XX.X: % 4. Assume that Brahms purchases 100 additional units of inventory at a cost of $65 per unit on September 12. What is the book value of inventory after that purchase? $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

5th Global Edition

9781292437156

Students also viewed these Accounting questions