If a company has four lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle) for $15, purchase 3 (middle) for $12, and purchase 4 (latest) for $14, which cost would be assumed to be sold first using LIFO costing? A. $17 B. $15 C. $12 D. $14
If a company has four lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle) for $15, purchase 3 (middle) for $12, and purchase 4 (latest) for $14, which cost would be assumed to be sold first using LIFO costing? A. $17 B. $15 C. $12 D. $14
If a company has four lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle) for $15, purchase 3 (middle) for $12, and purchase 4 (latest) for $14, which cost would be assumed to be sold first using LIFO costing?
A. $17
B. $15
C. $12
D. $14
Expert Solution & Answer
To determine
To identify:
The cost to be allocated in case of LIFO.
Introduction:
Last In First Out is a method of evaluation of cost of goods sold. In this method, it is assumed that units purchased at last is sold first. Costs in relation with units sold are taken from cost of last lot and in case, the sold units is higher than the latest lot purchased, then cost of last second lot is used.
Answer to Problem 1MC
The correct answer is d.
Explanation of Solution
d.
In case of LIFO, cost of sold uints are taken from the last lot purchased. In case, all the units from the last lot have been sold then cost of second last stock is applied for sale units. Thus, goods costing $14 would assumed to be sold first. Therefore, option d is correct.
a.
$17, would have been used in case of FIFO. Therefore, option a is incorrect.
b.
$15 cannot be used, until fourth and third lots are sold. Therefore, option b is incorrect.
c.
$12 cannot be used, until fourth lot has been sold. Therefore, option c is incorrect.
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If a company has four lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle) for$15, purchase 3 (middle) for $12, and purchase 4 (latest) for $14, which cost would be assumed to be sold firstusing LIFO costing?A. $17B. $15C. $12D. $14
Requirement 1. Calculate the EOQ.
Begin by selecting the formula used to calculate
EOQ.
(D=Demand
in units for one year,
P=Ordering
cost per purchase order,
C=Carrying
cost of one unit in stock,
Q=Any
order quantity.)
ModifyingAbove EOQ equals StartRoot StartFraction 2 DP Over Upper C EndFraction EndRoot With Subscript EOQ=2DPC
Part 2
(Round your answer to the nearest whole number.)
The EOQ is
560
jerseys.
Part 3
Requirement 2. Calculate the number of orders that will be placed each year.
Determine the formula used to calculate the number of orders that will be placed each year, then calculate the orders per year. (Round your answer up to the nearest whole number.)
÷
=
Number of orders
Q. 8 Which following costs need to be considered for both make or buy options?
O. Fixed overhead
O. Variable overhead
O. Rental revenue
Q. 9 What is the per unit cost to purchase from the vendor? Round to the nearest penny.
Q. 10 Based on your analysis, the CreativeStationary Co. should make the product in-house or buy them from the vender?
O. Make
O. Buy Do
(Q8,9,10 plz)
Construction Accounting And Financial Management (4th Edition)
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