Having a pretty tough time with FIFO/LIFO and Inventory Costing.
Can someone explain this answer? I’m having a tough time understanding where the (2 x 18) from. I get the 18 x 20 from Q3, but need some clarification on where the 2 x 18 part is coming from. 24 units sold in Q3 but only 20 are accounted for in the solution. Am I missing something?
Thanks in advance.
Question 3 L1FR-PQ2925-1410 Quarter** Units Held/Purchased****Unit Cost ()****Total Cost () Opening Inventory 15 24 360 1 25 15 375 2 22 18 396 3 18 20 360 4 20 22 440 Total 100 1,931**
Given that Magna sold 12, 24, 24, and 26 units in the four quarters respectively, answer the following questions:
Given that the company uses FIFO, ending inventory for the third quarter under the perpetual system is closest to:
$435 $456 $396 Ending inventory = (2 × 18) + (18 × 20) = $396