hi, i'm currently taking basic accounting and came upon this problem which i've been stuck on for days. can you guys point me to the right path? i understand the concept of FIFO and LIFO but i don't know what i'm doing wrong.
heres the question.
At the beginning of October, Bowser Co.’s inventory consists of 60 units with a cost per unit of $35. The following transactions occur during the month of October.
October 4
Purchase 140 units of inventory on account from Waluigi Co. for $55 per unit, terms 2/10, n/30.
October 5
Pay freight charges related to the October 4 purchase, $560.
October 9
Return 10 defective units from the October 4 purchase and receive credit.
October 12
Pay Waluigi Co. in full.
October 15
Sell 140 units of inventory to customers on account, $11,900. [Hint: The cost of units sold from the October 4 purchase includes $55 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $59 per unit.]
October 19
Receive full payment from customers related to the sale on October 15.
October 20
Purchase 120 units of inventory from Waluigi Co. for $60 per unit, terms 1/10, n/30.
October 22
Sell 100 units of inventory to customers for cash, $8,500.
Assuming for preparing financial statements that Bowser Co. reports inventory using LIFO, record the LIFO adjustment:
^^ this is what i have to do
according to the entry and using LIFO, this is wat i did
started with
60@ $35
140 @ $59 but returned 10 so 130@ $59
sold 140. end up with 50@ $35
bought 120@ $ 60
sold 100 more. end up with 50@ $35 + 20@ $60= 2950 <-- ending inventory
total cost= 2100+ 7670 + 7200= 16970
16970-2950= 14020 <--- cost of good sold
for some reason this is wrong so can someone tell me what i'm doing wrong?
heres the question.
At the beginning of October, Bowser Co.’s inventory consists of 60 units with a cost per unit of $35. The following transactions occur during the month of October.
October 4
Purchase 140 units of inventory on account from Waluigi Co. for $55 per unit, terms 2/10, n/30.
October 5
Pay freight charges related to the October 4 purchase, $560.
October 9
Return 10 defective units from the October 4 purchase and receive credit.
October 12
Pay Waluigi Co. in full.
October 15
Sell 140 units of inventory to customers on account, $11,900. [Hint: The cost of units sold from the October 4 purchase includes $55 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $59 per unit.]
October 19
Receive full payment from customers related to the sale on October 15.
October 20
Purchase 120 units of inventory from Waluigi Co. for $60 per unit, terms 1/10, n/30.
October 22
Sell 100 units of inventory to customers for cash, $8,500.
Assuming for preparing financial statements that Bowser Co. reports inventory using LIFO, record the LIFO adjustment:
^^ this is what i have to do
according to the entry and using LIFO, this is wat i did
started with
60@ $35
140 @ $59 but returned 10 so 130@ $59
sold 140. end up with 50@ $35
bought 120@ $ 60
sold 100 more. end up with 50@ $35 + 20@ $60= 2950 <-- ending inventory
total cost= 2100+ 7670 + 7200= 16970
16970-2950= 14020 <--- cost of good sold
for some reason this is wrong so can someone tell me what i'm doing wrong?