use the following inventory table to find the cost of goods sold using the last - in, first - out (lifo)…

use the following inventory table to find the cost of goods sold using the last - in, first - out (lifo) inventory method.\ndate of purchase units purchased cost per unit retail price per unit\nbeginning inventory 44 $860 $985\nfebruary 5 23 $1,760 $2,115\nfebruary 9 15 $945 $1,206\nmarch 3 29 $490 $700\nunits sold 80\nthe cost of goods sold is $ \n(type an integer or a decimal.)

use the following inventory table to find the cost of goods sold using the last - in, first - out (lifo) inventory method.\ndate of purchase units purchased cost per unit retail price per unit\nbeginning inventory 44 $860 $985\nfebruary 5 23 $1,760 $2,115\nfebruary 9 15 $945 $1,206\nmarch 3 29 $490 $700\nunits sold 80\nthe cost of goods sold is $ \n(type an integer or a decimal.)

Answer

Explanation:

Step1: Allocate units from latest purchases

We start by allocating units from the most recent purchase. We have 80 units sold. First, take the 29 units from the March 3 purchase at $490 per unit. Cost for these units is $490\times29 = 14210$. Remaining units to account for: $80 - 29=51$.

Step2: Allocate from next - latest purchase

Next, take 15 units from the February 9 purchase at $945 per unit. Cost for these units is $945\times15 = 14175$. Remaining units to account for: $51 - 15 = 36$.

Step3: Allocate from February 5 purchase

Then, take 23 units from the February 5 purchase at $1760 per unit. Cost for these units is $1760\times23=40480$. Remaining units to account for: $36 - 23 = 13$.

Step4: Allocate from beginning inventory

Finally, take 13 units from the beginning inventory at $860 per unit. Cost for these units is $860\times13 = 11180$.

Step5: Calculate total cost of goods sold

Sum up the costs from each step: $14210+14175 + 40480+11180=79945$.

Answer:

$79945$