learning: inventory and cost of goods sold\ntime\nestimated time to complete\n12 min\naccuracy\n67%\nprogress…
learning: inventory and cost of goods sold\ntime\nestimated time to complete\n12 min\naccuracy\n67%\nprogress\n15 mastered\n3 incorrect\n2 in progress\n0 not seen\n20 total questions\nquestion\nlo 2 turner company had the following activity in its inventory account during march 2024:\ndate\tactivity\tunits\tcost per unit\ttotal unit costs\nmarch 1\tbeginning inventory\t100\t$4.00\t$400.00\nmarch 3\tpurchase 1\t45\t5.00\t225.00\nmarch 5\tsale 1\t50\t9.00\t450.00\nmarch 9\tpurchase 2\t60\t5.50\t330.00\nmarch 12\tsale 2\t70\t10.00\t700.00\nmarch 14\tpurchase 3\t10\t6.00\t60.00\nmarch 15\tsale 3\t30\t12.00\t360.00\nmarch 30\tpurchase 4\t35\t5.05\t176.75\nbased on this information, what is the cost of goods sold for the month ended march 31, 2024, for turner company if the company uses perpetual lifo as its inventory valuation method?\nanswer\n$755.00\n$505.00\n$607.50\n$652.50\ni dont know yet
Answer
Explanation:
Step1: Identify LIFO principle
Under perpetual LIFO, last - in items are sold first.
Step2: Analyze Sale 1 on March 5
From March 3 purchase (45 units at $5.00) and 5 units from beginning inventory (at $4.00). Cost of goods sold for Sale 1: $(45\times5)+(5\times4)=225 + 20=245$.
Step3: Analyze Sale 2 on March 12
From March 9 purchase (60 units at $5.50) and 10 units from remaining beginning inventory (100 - 5=95, then 95 - 10 = 85). Cost of goods sold for Sale 2: $(60\times5.5)+(10\times4)=330+40 = 370$.
Step4: Analyze Sale 3 on March 15
From March 14 purchase (10 units at $6.00) and 20 units from remaining beginning inventory (85 - 20 = 65). Cost of goods sold for Sale 3: $(10\times6)+(20\times4)=60 + 80=140$.
Step5: Calculate total cost of goods sold
Total cost of goods sold=$245+370 + 140=755$.
Answer:
$755.00