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. units received unit cost june 4 70 $2.00 june 11 30 $3.00 june 18 60 $2.10 june 25 40 $2.40 $? per unit

a company sells 100 units in june. calculate the cost of goods sold using last - in, first - out. round to the nearest cent. units received unit cost june 4 70 $2.00 june 11 30 $3.00 june 18 60 $2.10 june 25 40 $2.40 $? per unit

Answer

Explanation:

Step1: Apply LIFO principle

Under LIFO, we start with the most - recent units. First, take 40 units from the June 25 receipt at $2.40 per unit. Then we need 60 more units (100 - 40) which we take from the June 18 receipt at $2.10 per unit.

Step2: Calculate total cost

The cost of the 40 units from June 25 is $40\times2.40 = 96$. The cost of the 60 units from June 18 is $60\times2.10=126$. The total cost of goods sold is $96 + 126=222$.

Step3: Calculate cost per unit

The cost per unit is $\frac{222}{100}=2.22$.

Answer:

$2.22$