Question

Dave's Donuts has the following data available for inventory, purchases, and sales for a recent year:

Date	Activity	Units	Purchase per (per unit)	Sales price (per unit)
Jan. 1	Beginning inventory	13,000	$75
Jan. 22	Purchase	8,500	$77
Apr. 21	Sale	15,000		$148
Apr. 27	Purchase	9,250	$79
Aug. 15	Sale	9,000		$148
Oct. 1	Purchase	11,250	$78.50
Nov. 19	Sale	8,650		$148

Compute cost of goods sold and the cost of ending inventory on December 31 assuming the company uses a perpetual inventory system and the FIFO cost flow assumption.

Answer 1

Answer with working is given below

Cost of Goods Sold $2,509,400 Cost of Ending Inventory $733,975 of Date Dave Donuts First-in, First-Out Schedule Quantity cost Cost of Cost of Purchase Inventory Inventory Quantity Purchase Merchandise Merchandise Inventory Total Unit Total purchased Unit Cost merchandise sold Unit sold Total Quantity Cost Cost Cost sold cost Cost 13,000 $75.00 $975,000 8,500 $77.00 $654,500 13,000 $75.00 $975,000 8,500 $77.00 $654,500 01-Jan Opening balance 22-Jan Purchase 21-Apr Sale 13,000 2,000 $75.00 $77.00 $975,000 $154,000 6,500 $77.00 $500,500 27-Apr Purchase 9,250 $79.00 $730,750 6,500 9,250 $77.00 $79.00 $500,500 $730,750 15-Aug Sale 6,500 $77.00 $79.00 $500,500 $197,500 2,500 6,750 $79.00 $533,250 01-Oct Purchase 11,250 $78.50 $883,125 6,750 11,250 $79.00 $78.50 $533,250 $883,125 19-Nov Sale 6,750 1,900 $79.00 $78.50 $533,250 $149,150 $2,509,400 9,350 $78.50 $733,975 $733,975 31-Dec Balance Opening Stock Purchases $975,000 $2,268,375 $3,243,375 $733,975 $2,509,400 Closing Stock Cost of Goods Sold