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Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual...

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Accounting

Salmone Company reported the following purchases and sales forits only product. Salmone uses a perpetual inventorysystem. Determine the cost assigned to cost of goods sold usingLIFO.

DateActivitiesUnits Acquired at CostUnits Sold at Retail
May 1Beginning Inventory200 units @ $15
5Purchase245 units @ $17
10Sales165 units @ $25
15Purchase125 units @ $18
24Sales115 units @ $26

Answer & Explanation Solved by verified expert
3.7 Ratings (345 Votes)

Answer:- The cost assigned to cost of goods sold using LIFO =$4875.

Explanation:-

LIFO Method
Goods purchased Cost of goods sold Inventory balance
Date # of units Cost per unit Total cost # of units sold Cost per unit Cost of goods sold # of units Cost per unit Inventory balance
May-01 200 15 3000 200 15 3000
May-05 245 17 4165 200 15 3000
245 17 4165
May-10 165 17 2805 200 15 3000
80 17 1360
May-15 125 18 2250 200 15 3000
80 17 1360
125 18 2250
May-24 115 18 2070 200 15 3000
80 17 1360
10 18 180
Totals 280 4875

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