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mariomintchev
ACCOUNTING QUESTION
Are you A counting the question HARHARHAR.
The calculations in the attachment are correct but I don't understand how my teacher got them. Someone explain please?
The numbers from the 2nd attachment are from the 1st
Am I clear enough with what I'm asking?
ok where do you want to start. I see lifo /ending inventory
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.
and by periodic and perpetual, i mean inventory systems used by the company.
ok. let me know if you need anything else clarified.
sso you just need to know how she did the 2nd attachment?
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
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
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
yeah. i have all the numbers but i want to know why those numbers were used.
read what i wrote and see if you still have questions
i think you have some of the dates wrong above
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
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
ok you can move on to someone else that needs assistance. ill let you know if i need more help.
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.
easy - she sold on 3/24 2 right? well using LIFO premises what was the latest inventory that came in?
Idk Im not too keen on this stuff yet although its not too complicated.
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 :)
then why isnt the other one 5 times 12
because you have to look at the LAST IN - FIRST OUT
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
oh it kinda makes sense now lol
thanks. :) gave you some more medals for the help.
let me know if you have other questions.