Question

ACCOUNTING QUESTION

Answer 1

Are you A counting the question HARHARHAR.

Answer 2

The calculations in the attachment are correct but I don't understand how my teacher got them. Someone explain please?

Answer 3

The numbers from the 2nd attachment are from the 1st

Answer 4

@juanitam

Answer 5

hi

Answer 6

HI!!!

Answer 7

Am I clear enough with what I'm asking?

Answer 8

ok where do you want to start. I see lifo /ending inventory

Answer 9

I have a worksheet that begins with the info given to me in the first attachment. I understood how my teacher got all of the other calculations (average, periodic fifo & lifo, and perpetual fifo) but I do not understand how she got the calculations she got in my second attachment for perpetual lifo.

Answer 10

and by periodic and perpetual, i mean inventory systems used by the company.

Answer 11

kk - working out now

Answer 12

ok. let me know if you need anything else clarified.

Answer 13

sso you just need to know how she did the 2nd attachment?

Answer 14

1. cgs at LIFO
3/5 sold 5 - so that means used all of the 4 on 3/4 purchase and 1 of the beg inventory
=4*14 + 1 * 12 = 68
3/24 sold 2 - so that means last in was 2 * 15 = 30

total cgs = 98

in order to do this you must look at each sold date based on the inventory that you have on hand

Answer 15

2. value of inventory

Beg +8 * 12 sold 1 on 3/5 purchase
3/4 +4* 14 sold on 3/5 purchase
3/18 +11 * 15 sold 2 on 3/24 purchase

left with
7 * 12 = 84
9 * 15 = 135

total of 219

Answer 16

3. gross profit
based on sells less cgs (calculated 1 above)

sells
5 *25 = 125
2 * 30 = 60

total sales 185
less cgs - 98

GP is 87

Answer 17

yeah. i have all the numbers but i want to know why those numbers were used.

Answer 18

read what i wrote and see if you still have questions

Answer 19

i think you have some of the dates wrong above

Answer 20

cgs is based on using the last inventory in for the current sale

so on 3/10 they sold 5

well she had 8 from beg and 4 from purchase on 3/4

so you use 4 on last sale and 1 from beginning

Answer 21

agreed on dates - but you still should be able to follow what i did - let m know if you need to me re-explain it

Answer 22

ok you can move on to someone else that needs assistance. ill let you know if i need more help.

Answer 23

I think I need the first part explained with words. Everything else makes sense based on the numbers from cost of goods sold.
I mainly don't understand why we use a 2 to multiply 15.

Answer 24

easy - she sold on 3/24 2 right?

well using LIFO premises
what was the latest inventory that came in?

Answer 25

11?

Answer 26

Idk Im not too keen on this stuff yet although its not too complicated.

Answer 27

right and you only need 2 of those
so 2 * 15 (cost of those items)

you are doing good - trust me deeper you go into accounting harder it gets. Not all about math :)

Answer 28

then why isnt the other one 5 times 12

Answer 29

5 were sold

Answer 30

because you have to look at the LAST IN - FIRST OUT

Answer 31

the last in on the first sell was 4 @ 14
but you sold 5
so you had to use all 4 @ 14 PLUS
1 from beginning @ 12

Answer 32

oh it kinda makes sense now lol

Answer 33

thanks. :)
gave you some more medals for the help.

Answer 34

let me know if you have other questions.