Question

hapter 6 Review 2021 The Boxwood Company sells blankets for $60 cach. The following was taken from the inventory records during May. The company had no beginning inventory on May 1, Date Blankets Units Cost Purchase Sale Purchase May 3 10 $20 17 10 $24 Sale Sale Purchase 20 6 23 3 30 $30 10 17. Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method. a. $120 b. $180 c $136 d. $144 18 Inventory at the end of the year is overstated. Which of the following statements correctly states the effect of the

Answer 1

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Boxwood Company
Perpetual FIFO
Date	Cost of Goods available for sale			Cost of good sold			Ending Inventory
	No. of Units	Cost per unit	Amount	No. of Units	Cost per unit	Cost of Goods sold	No. of Units	Cost per unit	Inventory Balance
3-May	5.00	20.00	100.00				5.00	20.00	100.00
10-May				3.00	20.00	60.00	2.00	20.00	40.00
17-May	10.00	24.00	240.00				2.00	20.00	40.00
							10.00	24.00	240.00
20-May				2.00	20.00	40.00	6.00	24.00	144.00
				4.00	24.00	96.00
23-May				3.00	24.00	72.00	3.00	24.00	72.00
30-May	10.00	30.00	300.00				3.00	14.00	42.00
							10.00	30.00	300.00
Ending Inventory				12.00		268.00	13.00		342.00
So Cost of good sold is $ 268.