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

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

a company sells 100 units in june. calculate the cost of goods sold using last - in, first - out. 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. Cost of these 60 units = 60×$2.20. $60\times2.20 = 132$

Step2: Get remaining units

We need 100 units in total. After taking 60 units from June 25, we need 100 - 60=40 units. Take these 40 units from June 18. Cost of these 40 units = 40×$2.30. $40\times2.30 = 92$

Step3: Calculate total cost of goods sold

Total cost of goods sold = Cost of units from June 25+Cost of units from June 18. $132 + 92=224$

Answer:

$224.00$