Question
The following data was obtained from the inventory records of Zachary Company for the month of April: April 1 Beginning inventory 2,000 units @ $
The following data was obtained from the inventory records of Zachary Company for the month of April:
April 1 Beginning inventory 2,000 units @ $ 2 each
April 8 Purchased 1,000 units @ $ 3 each
April 12 Purchased 300 units @ $ 4 each
April 22 Purchased 500 units @ $ 5 each
April 30 Sold 1,600 units
Calculate the cost of goods sold on April 30, using
a. LIFO valuation method
b. FIFO valuation method
c. Weighted-average valuation method
Step by Step Solution
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Step: 1
a LIFO valuation method Using the LIFO lastin firstout method the cost of goods sold for April 30 would be calculated based on the cost of the most recent inventory purchases In other words we assume ...
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Niebels Methods, Standards and Work Design
Authors: Andris Freivalds, Benjamin Niebel
13th edition
978-0073376363, 73376361, 978-0073376318
