Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. salmone company reported the following purchases a

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

Free

60.1K

Verified Solution

Question

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

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

21 Brightspace Assignment tion 7 of 10 1 point Question Attempt 1 of 1 2...

Basic Math
Q

If 0.175 L of 0.364 M ammonia solution is titriated with 0.095 L of 0.35 M...

Chemistry
Q

The water used in this experiment is sparged with nitrogen to remove any dissolved oxygen. The...

Chemistry
Q

Let a sequence {xn} from n=1 to infinity satisfy x_(n+2)=sqrt(x_(n+1) *xn) for n=1,2 ...... 1. Prove that...

Advance Math
Q

TABLE OF INDEFINITE INTEGRALS f cf x dx c f f x dx fkdx kx...

Calculus
Q

If a linear function has the points (-9,9) and (-1,8) on its graph, what is...

Algebra
Q

Examine the last column in Table 8.2 for the following personnel only: access control officer,...

Accounting
Q

Jan 31, 2023: Accrue salaries of $2500 to be paid on Feb 15, 2023 ...

Accounting
Q

Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There...

Accounting
Q

Next year, there are two possible values for its assets, each equally likely: $1 190...

Finance
Q

Introduction Part a - The ABC Company, a mail-order firm, wants to install an automatic...

Finance
Q

On July 2,2022, the accounting staff of Waterways BC factory was shocked to discover that...

Accounting