during 2024, a company sells 358 units of inventory for $87 each. the company has the following inventory…

during 2024, a company sells 358 units of inventory for $87 each. the company has the following inventory purchase transactions for 2024.\ndate transaction number of units unit cost total cost\njanuary 1 beginning inventory 67 $66 $4,422\nmay 5 purchase 161 68 10,948\nnovember 3 purchase 182 71 12,922\n410 $28,292\ncalculate ending inventory and cost of goods sold for 2024 assuming the company uses lifo.\nending inventory\ncost of goods sold

during 2024, a company sells 358 units of inventory for $87 each. the company has the following inventory purchase transactions for 2024.\ndate transaction number of units unit cost total cost\njanuary 1 beginning inventory 67 $66 $4,422\nmay 5 purchase 161 68 10,948\nnovember 3 purchase 182 71 12,922\n410 $28,292\ncalculate ending inventory and cost of goods sold for 2024 assuming the company uses lifo.\nending inventory\ncost of goods sold

Answer

Explanation:

Step1: Determine units in ending inventory

Total units available = 410. Units sold = 358. So, ending - inventory units = 410 - 358 = 52.

Step2: Calculate cost of goods sold using LIFO

Under LIFO, we assume the last - purchased units are sold first. We first use the November 3 purchase of 182 units at $71 each. Then we use units from the May 5 purchase. From the November 3 purchase, cost of 182 units = 182×$71=$12,922. We need to sell 358 units. After using 182 units from November 3, we need 358 - 182 = 176 more units. From the May 5 purchase, cost of 176 units at $68 each = 176×$68 = $11,968. Cost of goods sold = $12,922 + $11,968=$24,890.

Step3: Calculate ending inventory cost

The ending inventory of 52 units comes from the May 5 purchase (since we used up the November 3 purchase first). Cost of ending inventory = 52×$68 = $3,536.

Answer:

Ending inventory: $3,536 Cost of goods sold: $24,890