Skysong, Inc. has the following inventory dа ta: July 1 Beginning inventory 33 units at $16 $528 7 Purchases 115 units at $17 1955 22 Purchases 16 units at $18 288 $2771 A physical count of merchandise inventory on July 30 reveals that there are 41 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is $2058. $1976. $2033. $2107.

Question

Business

Saul Gaines

6 March, 11:39

Skysong, Inc. has the following inventory dа ta: July 1 Beginning inventory 33 units at $16 $528 7 Purchases 115 units at $17 1955 22 Purchases 16 units at $18 288 $2771 A physical count of merchandise inventory on July 30 reveals that there are 41 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is $2058. $1976. $2033. $2107.

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Answers (2)

Know the Answer?

Rudy Jacobs · Answer 1

the amount allocated to cost of goods sold using LIFO inventory method =

16 * $18 = $288

107 * $17 = $1819

total $2107

Explanation:

Using LIFO inventory method means that thos goods that comes in last will be sold or issued first while the one that come earlier will remain on sold or issued.

Libby Maddox · Answer 2

The answer is $2,107

Explanation:

LIFO means Last in First out. In this system, it means the inventory that was bought last will be sold out first.

Opening balance:

July 1: 33 units at $16 each

Purchased:

July 7 : 115 units at $17 each

Purchased:

July 22: 16 units at $18 each

Total number of units sold is 123 units (33 + 115 + 16 - 41)

So according to LIFO, we have:

107 units at $17 = $1,819

16units at $18 = $288

$1,819 + $288

=$2,107

Note: According to LIFO, all the last 16 units will be sold at $18

And 107 units out of 115 units will also be sold at $17