Question

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	190 units @ $14
5	Purchase	240 units @ $16
10	Sales		160 units @ $24
15	Purchase	120 units @ $17
24	Sales		110 units @ $25

Answer 1

	Cost of goods available			Cost of goods sold
	Units	Unit cost	Total	Units	Unit cost	Total
May 1	190	14	2660	190	14	2660
May 5	240	16	3840	80	16	1280
May 15	120	17	2040	0	17	0
Total	550		8540	270		3940
Cost of goods sold using FIFO = 3940