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 $? per unit 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 $? per unit round to the nearest cent.

Answer

Explanation:

Step1: Allocate units from latest - received

First, use units from June 25. There are 60 units received on June 25. Since we need to sell 100 units, after using 60 units from June 25, we still need 100 - 60=40 units.

Step2: Use remaining units from next - latest

Next, use 40 units from June 18 (as it is the next - latest batch after June 25).

Step3: Calculate cost of goods sold

The cost of goods sold (COGS) is calculated as follows: The 60 units from June 25 cost 60×$2.20 = $132. The 40 units from June 18 cost 40×$2.30=$92. The total COGS is 132 + 92=$224.

Answer:

$224.00