Question

During the year, Wright Company sells 380 remote-control airplanes for $100 each. The company has the following inventory purchase transactions for the year. Date Jan. 1 May. 5 Nov. 3 Transaction Beginning inventory Purchase Purchase Number of Unit Units Cost 50 $ 72 200 75 150 80 400 Total Cost $ 3,600 15,000 12,000 $30,600 Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO. FIFO Ending Inventory Cost of Goods Available for Sale Cost of Goods # of units Cost per unit Available for Sale Ending Cost of Goods Sold # of units Cost per unit “ Cost of Goods Sold $ os of # of units Cost per unit Beginning Inventory Purchases: May 5 Nov. 3 Total $ 00 $ 00 $ 0 0 0 $ 0 0 $

Answer 1

Calculation of ending inventory and cost of goods sold under FIFO - periodic system:-
	Periodic FIFO	Cost of Goods Available for Sale			Cost of Goods Sold - Periodic FIFO			Ending inventory - Periodic FIFO
		# of Units	Cost per Unit	Cost of Goods Available for Sale	# of Units sold	Cost per Unit	Cost of Goods Sold	# of Units in Ending inventory	Cost per Unit	Ending inventory
	Beginning Inventory	50	$              72.00	$             3,600	50	$72.00	$           3,600
	Purchases:
	May 5	200	$              75.00	$           15,000	200	$75.00	$         15,000
	Nov 3	150	$              80.00	$           12,000	130	$80.00	$         10,400	20	$80.00	$           1,600
	Total	400		$           30,600	380		$        29,000	20		1,600

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