If Zapp Electronics uses the last

If Zapp Electronics uses the last - inventory and 50 units...

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If Zapp Electronics uses the last-in, first-out method with a perpetual system, the cost of the last  units purchased is allocated to cost of goods sold whenever a sale occurs. Therefore, the  assumption would be that the 50 units sold on March 20 came from beginning inventory, the units  sold on July 15 and September 30 were all purchased on April 10, and the units sold on December  15 were all purchased on October 10. Therefore ending inventory consists of 50 units from beginning 
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Unformatted text preview: inventory and 50 units from the October 10 purchase. Units Per Unit Cost Total Cost Beginning Inventory 50 $ 14 = $ 700 PurchaseApril 10 150 $ 16 = 2,400 PurchaseOctober 10 150 $ 17 = 850 Ending Enventory 100 $ 1,500 Cost of Goods Available for Sale $ 7,200- Ending Inventory (1,550) = Cost of Goods Sold $ 5,650...
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If Zapp Electronics uses the last - inventory and 50 units...

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