Question

only the FIFO method is fine

Miuterm Il Prep 4 Inventory Steward Company reports the # of Units 100 Cost per Unit $16 $19 Date ompany reports the following: 11/1 Activity 11/4 Beg. Inventory Purchase 300 11/7 Sale (price $50) 200 11/13 $21 Purchase 11/22 Sale (price $50) 500 Provide the dollar value of Cost of Goods Sold and Ending Inventory under the following inventory methods: 500 (A) Average Cost (B) FIFO

Answer 1

B)

FIFO method

Date	Activity	# of units	Cost per unit	Cost of goods sold	Balance
11./1	Beginning inventory	100	$16		(100 x $16 = 1600)
11./4	Purchases	300	$19		(100 x $16 + 300 x $19 = $ 7300)
11./7	Sales(Price $50)	200		(100 x $16 + 100 x $19) = $ 3500	(200 x $19 = $ 3800)
11./13	Purchases	500	$21		(200 x $19 + 500 x $ 21 = $ 14,300)
11./22	Sales(Price $50)	500		(200 x $19 + 300 x $ 21 = $ 10,100)	(200 x $ 21 = $ 4200)

Cost of goods sold = $ 3500 + $ 10,100 = $ 13,600

Ending inventory = $ 4200