Ask Experts Questions for FREE Help !
Ask
    Panini69's Avatar
    Panini69 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 17, 2018, 05:59 PM
    5. At the end of January, Higgins Data Systems had an inventory of 690 units, which c
    1. At the end of January, Higgins Data Systems had an inventory of 690 units, which cost $13 per unit to produce. During February, the company produced 1,030 units at a cost of $16 per unit.


    If the firm sold 1,190 units in February, what was its cost of goods sold? (Assume LIFO inventory accounting.)
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
    		  
    #2

    Sep 17, 2018, 08:09 PM
    LIFO last in first out, so you will have to assume a uniform rate of production, you cannot just say the 1030 units were sold first.

    daily rate of production 1030 /28 = 36 or 37
    daily sales rate 1190/28 =42 0r 43

    so you need to construct a model which demonstrates this

    on the first day COS is 546, on the second 671

    The simple answer of 530 units at the close of the month representing inventory at $13 cost is inaccurate just as assuming finished goods are not received until the end of the month is inaccurate as the old inventory is used away at 6 units a day but some inventory is added at the end of the day. What may be accurate to say is inventory consists of 524 unit at $13 and 6 units at $16 and base your calculations on this
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Beginning Inventory 10 units @ 18 Purchase [ 1 Answers ]

Jan 1 Beginning Inventory 10 units @ 18 Apr 3 Purchases 30 units @ 20 Aug 31 Puchases 28 unuits @ 25 Sep 29 purchases 17 units 30 Dec 31 Ending Inventory 21 units What's the ending inventory cost using a) FIFO (b) LIFO (c)...

At the end of January, Mineral Labs had inventory of 725 units, which cost $10 per un [ 0 Answers ]

At the end of January, Mineral Labs had inventory of 725 units, which cost $10 per unit to produce. During February the company produced 650 units at a cost of $14 per unit. If the firm sold 1,000 units in February, what was the cost of goods sold? a. Assume LIFO inventory accounting. b. Assume...

Inventory systems [ 1 Answers ]

Inventory systems:- 1.In a perpetual inventory system, detailed records are maintained continuously. 2.In a perpetual Inventory system, all purchases made by the company are first debited to merchandise inventory account. 3.In a perpetual Inventory system, a physical count of the inventory is...

Inventory systems [ 2 Answers ]

What is the best inventory system to use for high priced low volume items?

View more questions Search