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During 2015, a company sells 200 units of inventory for $50 each The company has

During 2015, a company sells 200 units of inventory for $50 each. The company has the following inventory purchase transactions for 2015:

 

 

Date

 

Transaction

 

Number

of Units

 

Unit

Cost

 

Total

Cost

 

 

Jan. 1

 

Beginning inventory

 

50

 

$39

 

$  1,950

 

 

May 5

 

Purchase

 

100

 

  38

 

3,800

 

 

Nov. 3

 

Purchase

 

80

 

  37

 

2,960

 

 

 

 

 

 

230

 

 

 

$8,710

 

 

Actual sales by the company include its entire beginning inventory, 80 units of inventory from the May 5 purchase, and 70 units from the November 3 purchase.  Calculate cost of goods sold and ending inventory for 2015 assuming the company uses specific identification.

 

 

146. For each item below, indicate whether FIFO or LIFO will generally result in a higher reported amount when inventory costs are rising versus falling.

Inventory

Costs

Higher

Total Assets

Higher Cost of Goods Sold

Higher

Net Income

Rising

 

 

 

Falling

 

 

 

Jan 27 2020 View more View Less

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