Required information [The following information applies to the questions displayed below.] Suppose that David has elected to account for inventories and has adopted the last-in, first-out (LIFO) inventory-flow method for his business inventory of widgets (purchase prices below). Widget Number 1 Number 2 Number 3 Widget Number 4 Number 5 Number 6 Purchase Date August 15 October 30 November 10 Cost of goods sold Ending inventory Purchase Date In late December, David sold one widget, and next year David expects to purchase three more widgets at the following estimated prices: Early spring Summer Fall Direct Cost $2,100 2,200 2,300 Other Costs $ 100 LIFO 150 100 Estimated Cost $ 2,600 2,260 2,400 Total Cost $ 2,200 2,350 2,400 What cost of goods sold and ending inventory would David record if he elects to use the LIFO method this year?
Required information [The following information applies to the questions displayed below.] Suppose that David has elected to account for inventories and has adopted the last-in, first-out (LIFO) inventory-flow method for his business inventory of widgets (purchase prices below). Widget Number 1 Number 2 Number 3 Widget Number 4 Number 5 Number 6 Purchase Date August 15 October 30 November 10 Cost of goods sold Ending inventory Purchase Date In late December, David sold one widget, and next year David expects to purchase three more widgets at the following estimated prices: Early spring Summer Fall Direct Cost $2,100 2,200 2,300 Other Costs $ 100 LIFO 150 100 Estimated Cost $ 2,600 2,260 2,400 Total Cost $ 2,200 2,350 2,400 What cost of goods sold and ending inventory would David record if he elects to use the LIFO method this year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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