Question

Uw MDOS IV ure yer you weru. Chase Co. uses the perpetual inventory method. The inventory records for Chase reflected the following information 11 Jan 1 Jan 12 Jan 18 Jan 21 Jan 25 Jan 31 Beginning inventory Purchase Sales Purchase Purchase Sales 800 units $3.30 900 units # $3.10 1,000 units $4.80 BOD units $3.40 600 units $3.20 950 units $4.80 00.2004 Assuming Chase uses a LIFO cost flow method, what is the amount of cost of goods sold for the sales transaction on January 18? Multiple Choice o $3,300 • $3,120 0 $3,500 O $3.260

Answer 1

LIFO: Last in First out system.

answers :

1. $3,120
2. $903

1) Cost of goods sold on January 18 sales

units sold on January 18 = 1,000

LIFO order

The price assigned = 900 Units At 3.10, 100 units at 3.30

cost of Goods Sold = 900*3.10+100*3.30 =2790+330 = $ 3,120 (Answer)

Answer: $ 903 Ending Invenotry 903 Periodic : LIFO Goods Purchasd Cost of Goods Sold Inventory Balance cost of Goods Cost Per Available for # of Units Cost Per Cost of Cost Per Ending # of Units Unit sales sold Unit Goods Sold # of Units Unit Inventory Beginnng invenotry| 85 2.60 221 2.60 85 2.60 221 Purchases First 290 3.10 899 70 3.10 217 220 3.10 Second 195 3.20 624 195 3.20 624 0 3.20 Third 50 3.60 180 3.60 180 03.60 Totals 620 1924 315 1021.00 305 0.00 903 682 50