Asked by Meghan Suchy on Jun 27, 2024
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On June 1, Corona Company had 40 units of inventory at a cost of $6 each.June purchases and sales were as follows: Purchases Sales June 510 units @$8 June 420 unit 1220 units @$102012 unit 2510 units $16\begin{array}{llll}&\text { Purchases }&&\text { Sales }\\ \text { June } 5 & 10 \text { units } @ \$ 8 & \text { June } 4 & 20 \text { unit } \\12 & 20 \text { units } @ \$ 10 & 20 & 12 \text { unit }\\25& 10 \text { units } \$ 16\end{array} June 51225 Purchases 10 units @$820 units @$1010 units $16 June 420 Sales 20 unit 12 unit
The cost of goods sold during June was $272.Corona must use:
A) FIFO
B) LIFO perpetual
C) weighted average
D) LIFO periodic
LIFO Periodic
A method of inventory valuation where the last items placed in inventory are the first ones to be recorded as sold, used in periodic inventory accounting systems.
Cost of Goods Sold
Expenses directly linked to the creation of goods sold by a business, such as materials and labor.
Inventory Units
The individual items or quantifiable segments of products that a business holds in its inventory, each possibly having a different value or cost basis.
- Identify the impacts of choosing different inventory valuation methods on financial statements.
- Gain insight into the key principles underlying inventory costing methods like FIFO, LIFO, and weighted average.
Verified Answer
Learning Objectives
- Identify the impacts of choosing different inventory valuation methods on financial statements.
- Gain insight into the key principles underlying inventory costing methods like FIFO, LIFO, and weighted average.
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