Ask Question
15 October, 15:34

Sheffield has the following inventory information. July 1 Beginning Inventory 15 units at $20 $300 7 Purchases 65 units at $19 1235 22 Purchases 5 units at $25 125 $1660 A physical count of merchandise inventory on July 31 reveals that there are 30 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is

+2
Answers (1)
  1. 15 October, 15:41
    0
    The amount allocated to cost of goods sold for July is $1,075

    Explanation:

    On July 31, there are 30 units on hand. Number of units the company sells in the month:

    15+65+5-30 = 55 units

    July 1 Beginning Inventory 15 units at $20 $300

    July 7 Purchases 65 units at $19

    July 22 Purchases 5 units at $25

    Sheffield uses the LIFO inventory method. The LIFO is a method used to account value for inventory. Under the method, the last item of inventory purchased is the first one sold.

    Cost of goods sold for July = 5 x $25 + 50 x $19 = $125 + $950 = $1,075
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Sheffield has the following inventory information. July 1 Beginning Inventory 15 units at $20 $300 7 Purchases 65 units at $19 1235 22 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers