19 multiple choice 2.13 points a companys inventory records indicate the following data for the month of…

19 multiple choice 2.13 points a companys inventory records indicate the following data for the month of january: date activities units acquired at cost units sold at retail january 1 beginning inventory 380 units @ $18 = $6,840 january 8 purchase 360 units @ $20 = $7,200 january 12 sale 640 units @ $70 january 17 purchase 420 units @ $22 = $9,240 january 23 sale 310 units @ $70 january 28 purchase 480 units @ $24 = $11,520 if the company uses the lifo perpetual inventory system, what would be the cost of the ending inventory? $6,820. $13,340. $15,740. $18,400. $19,060.

19 multiple choice 2.13 points a companys inventory records indicate the following data for the month of january: date activities units acquired at cost units sold at retail january 1 beginning inventory 380 units @ $18 = $6,840 january 8 purchase 360 units @ $20 = $7,200 january 12 sale 640 units @ $70 january 17 purchase 420 units @ $22 = $9,240 january 23 sale 310 units @ $70 january 28 purchase 480 units @ $24 = $11,520 if the company uses the lifo perpetual inventory system, what would be the cost of the ending inventory? $6,820. $13,340. $15,740. $18,400. $19,060.

Answer

Explanation:

Step1: Calculate total units available

Total units available = Beginning inventory + Purchases = 380+360 + 420+480 = 1640 units

Step2: Calculate total units sold

Total units sold = 640+310 = 950 units

Step3: Calculate ending - inventory units

Ending - inventory units = Total units available - Total units sold = 1640 - 950 = 690 units

Step4: Determine cost of ending inventory using LIFO

Under LIFO (Last - In, First - Out) perpetual system, we start from the earliest inventory layers for the ending inventory. First, we take the beginning inventory of 380 units at $18 per unit. The remaining units in ending inventory = 690 - 380=310 units These 310 units come from the January 8 purchase at $20 per unit. Cost of ending inventory=(380×$18)+(310×$20) = $6840 + $6200 = $13040

It seems there is a calculation error above. Let's recalculate:

Step1: Track inventory after each transaction

  • Beginning inventory: 380 units at $18
  • January 8 purchase: 360 units at $20 Inventory before January 12 sale: 380 units at $18 and 360 units at $20
  • January 12 sale of 640 units:
    • From the January 8 purchase: 360 units
    • From the beginning inventory: 640 - 360=280 units Inventory after January 12 sale: 380 - 280 = 100 units at $18
  • January 17 purchase: 420 units at $22 Inventory before January 23 sale: 100 units at $18 and 420 units at $22
  • January 23 sale of 310 units:
    • From the January 17 purchase: 310 units Inventory after January 23 sale: 100 units at $18 and 420 - 310 = 110 units at $22
  • January 28 purchase: 480 units at $24

Step2: Calculate cost of ending inventory

Cost of ending inventory=(100×$18)+(110×$22)+(480×$24) = $1800+2420 + 11520 = $15740

Answer:

$15,740