Mighty Oaks sells one product, 10’ tall oak trees. Their activity this month is as follows: Sept. 1beginning inventory40 trees at $20 = $800 Sept. 3Sell30 trees at $80 Sept. 5 buy 70 trees @ 30=$2,100 Sept. 6 sell60 trees at $80 Sept. 14 buy90 trees @ $40=$3,600 Sept. 21 sell86 trees @ $80 Sept. 28 buy 20 trees @ $50=1,000 Total220 trees$7,500 176 trees What is the Cost of Goods Sold (perpetual) using: LIFO (last in, first out) $ _________________FIFO (first in first out) $___________________________________
Mighty Oaks sells one product, 10’ tall oak trees. Their activity this month is as follows:
Sept. 1beginning inventory40 trees at $20 = $800
Sept. 3Sell30 trees at $80
Sept. 5 buy 70 trees @ 30=$2,100
Sept. 6 sell60 trees at $80
Sept. 14 buy90 trees @ $40=$3,600
Sept. 21 sell86 trees @ $80
Sept. 28 buy 20 trees @ $50=1,000
Total220 trees$7,500 176 trees
What is the Cost of Goods Sold (perpetual) using:
LIFO (last in, first out) $ _________________FIFO (first in first out) $___________________________________
Definition:
LIFO: Last in First out , which means Goods received last should be sold first.
FIFO: First in First out, which means Goods received First should be sold first.
Calculations:
Schedule of cost of goods sold:
LIFO:
Hence, cost of Goods sold is $ 5840
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