## mariomintchev 3 years ago ACCOUNTING QUESTION

1. LessOffensivename

Are you A counting the question HARHARHAR.

2. mariomintchev

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

3. mariomintchev

4. mariomintchev

5. mariomintchev

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

6. mariomintchev

@juanitam

7. JuanitaM

hi

8. mariomintchev

HI!!!

9. mariomintchev

Am I clear enough with what I'm asking?

10. JuanitaM

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

11. mariomintchev

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.

12. mariomintchev

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

13. JuanitaM

kk - working out now

14. mariomintchev

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

15. JuanitaM

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

16. JuanitaM

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

17. JuanitaM

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

18. JuanitaM

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

19. mariomintchev

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

20. JuanitaM

read what i wrote and see if you still have questions

21. mariomintchev

i think you have some of the dates wrong above

22. JuanitaM

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

23. JuanitaM

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

24. mariomintchev

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

25. mariomintchev

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.

26. JuanitaM

easy - she sold on 3/24 2 right? well using LIFO premises what was the latest inventory that came in?

27. mariomintchev

11?

28. mariomintchev

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

29. JuanitaM

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 :)

30. mariomintchev

then why isnt the other one 5 times 12

31. mariomintchev

5 were sold

32. JuanitaM

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

33. JuanitaM

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

34. mariomintchev

oh it kinda makes sense now lol

35. mariomintchev

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

36. JuanitaM

let me know if you have other questions.