Question

Blue Spruce Company's inventory records show the following data for the month of September:

			Units			Unit Cost
Inventory,	September 1		95			$2.80
Purchases:	September 8		445			3.40
	September 18		300			3.90

A physical inventory on September 30 shows 150 units on hand.

Calculate the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodic inventory system.

Ending inventory		$enter a value of ending inventory in dollars
Cost of goods sold		$enter a cost of goods sold in dollars

Answer 1

Solution:

Ending inventory = 150 units from Sept 18 purchases = 150*$3.90 = $585

Cost of goods sold = 95*$2.80 + 445*$3.40 + 150*$3.90 = $2,364