Cost Inventory Method Merchandise Merchandise Inventory Sold FIFO $7,728 $21,522
ID: 2610840 • Letter: C
Question
Cost Inventory Method Merchandise Merchandise Inventory Sold FIFO $7,728 $21,522 LIFO 6,660 22,590 Average cost Cost of merchandise available for sale: 42 units at $180 = $ 7,560 58 units at $195 = 11,310 20 units at $204 = 4,080 30 units at = 150 units First-in, first-out: Merchandise inventory: 30 units at $210 = 6,300 7 units at $204 = 1,428 37 units $ 7,728 Merchandise sold $ 21,522 Last-in, first-out Merchandise inventory: 37 units at $180 = $ 6,660 Merchandise sold $ 22,590 Average cost Average cost = total cost / 150 total units = Merchandise inventory: units at = Merchandise sold Cost Inventory Method Merchandise Merchandise Inventory Sold FIFO $7,728 $21,522 LIFO 6,660 22,590 Average cost Cost of merchandise available for sale: 42 units at $180 = $ 7,560 58 units at $195 = 11,310 20 units at $204 = 4,080 30 units at = 150 units First-in, first-out: Merchandise inventory: 30 units at $210 = 6,300 7 units at $204 = 1,428 37 units $ 7,728 Merchandise sold $ 21,522 Last-in, first-out Merchandise inventory: 37 units at $180 = $ 6,660 Merchandise sold $ 22,590 Average cost Average cost = total cost / 150 total units = Merchandise inventory: units at = Merchandise soldExplanation / Answer
Closing Inventory
30 units @ $210- FIFO
7 units @ $204
LIFO
37 units @$ 180
PURCHASES
Explanation for 30 units @ 210
1. Under FIFO 7 units are in stock out of total purhcase of 20 units
2. Balance 30 units hence would be @ 210 since under LIFO entire 37 units is at 180 ( out of 42 units )
AVERAGE COST = Total Cost/ Total Units
29250/150= 195
MERCHANDISE INVENTORY =Avg cost x Inventory in stock
= 195x74= 14430
MERCHANDISE SOLD = Units sold x Avg Cost
= (150-74) * 195= 76*= 14820
Units Rate per unit Amt 42 180 7560 58 195 11310 20 204 4080 30 210 6300 150 29250