During the year, Wright Company sells 435 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 40 $ 80 $ 3,200 May. 5 Purchase 240 83 19,920 Nov. 3 Purchase 180 88 15,840 460 $ 38,960 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO.
During the year, Wright Company sells 435 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 40 $ 80 $ 3,200 May. 5 Purchase 240 83 19,920 Nov. 3 Purchase 180 88 15,840 460 $ 38,960 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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During the year, Wright Company sells 435 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year.
Date | Transaction | Number of Units | Unit Cost | Total Cost | |||||||
Jan. 1 | Beginning inventory | 40 | $ | 80 | $ | 3,200 | |||||
May. 5 | Purchase | 240 | 83 | 19,920 | |||||||
Nov. 3 | Purchase | 180 | 88 | 15,840 | |||||||
460 | $ | 38,960 |
Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO.
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