The periodic inventory records of Lucas Dental Supply indicate the following for the month of April:
Apr
1 Beginning merchandise inventory 15 units @ $32 each
7 Purchase 7 units @ $34 each
18 Purchase 12 units @ $37 each
26 Purchase 10 units @ $40 each
As of April 30, Lucas counts 8 units of merchandise inventory on hand.
Compute ending merchandise inventory and cost of goods sold for Lucas using the FIFO inventory method.
What will be an ideal response
Ending Merchandise Inventory: 8 units x $40 = $320
Cost of goods available for sale:
Date
Quantity Unit
Cost Total
Cost
Apr. 1 15 units $ 32 $ 480
7 7 units $ 34 $ 238
18 12 units $ 37 $ 444
26 10 units $ 40 $ 400
Totals 44 units $ 1,562
Cost of Goods Sold:
Cost of Goods Available for Sale $ 1,562
Less: Ending Merchandise Inventor 320
Cost of Goods Sold $ 1,242
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What will be an ideal response?
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