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3 November, 17:59

Sabre uses the LIFO method of valuing inventory. On October 31, they sold 175 shredders. Find the cost of goods sold. Enter your answer in currency format and round to the nearest cent.

Date Units received Unit cost

Oct 1 150 $35.02

Oct 10 75 $33.78

Oct 20 75 $32.97

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Answers (2)
  1. 3 November, 18:21
    0
    Answer: The cost of goods sold = 5881.75

    Step-by-step explanation:

    Cost of available goods = 75x32.97 + 75x33.78 + 150x35.02 = $10259.25

    Units available = 150 + 75 + 75 = 300

    Sold units = 175

    Ending inventory = 300-175=125

    Value of ending inventory = 125x35.02 = $4377.5

    Cost of goods sold = cost of available goods - value of ending inventory

    Cost of goods sold = 10259.25 - 4377.5 = $5881.75
  2. 3 November, 18:27
    0
    Cost of goods sold = $5881.8

    Step-by-step explanation:

    We know that,

    the total number of sold units = 175,

    the total number of units received = 150 + 75 + 75 = 300

    the total cost of the available goods = (150 * 35.02) + (75 * 33.78) + (75 * 32.97)

    = $10259.25

    Ending inventory = 300 - 175 = 125

    Worth of the ending inventory = 125 x 35.02 = $4377.5

    So the cost of good sold will be = 10259.25 - 4377.5 = $5881.8
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