a company sells 100 units in june. calculate the cost of goods sold using last - in, first - out. units…

a company sells 100 units in june. calculate the cost of goods sold using last - in, first - out. units received unit cost june 4 60 $2.20 june 11 20 $2.90 june 18 40 $2.30 june 25 60 $2.20 round to the nearest cent.

a company sells 100 units in june. calculate the cost of goods sold using last - in, first - out. units received unit cost june 4 60 $2.20 june 11 20 $2.90 june 18 40 $2.30 june 25 60 $2.20 round to the nearest cent.

Answer

Explanation:

Step1: Apply LIFO principle

Under LIFO, we start with the most - recent units. First, take 60 units from June 25. Then we need 40 more units to reach 100 units sold. We take these 40 units from June 18.

Step2: Calculate cost of goods sold

The cost of the 60 units from June 25 is $60\times2.20 = 132$. The cost of the 40 units from June 18 is $40\times2.30=92$. The total cost of goods sold is $132 + 92=224$.

Answer:

$224.00