Question

View Policies Show Attempt History Current Attempt in Progress Kingbird Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available Units Unit Cost Total Cost April 1 inventory 280 $31 $8,680 April 15 purchase 450 37 16,650 April 23 purchase 270 40 10,800 1,000 $36,130 Compute the April 30 inventory and the April cost of goods sold using the FIFO method. Ending inventory $ Cost of goods sold $ eTextbook and Media Previous

Answer 1

Step 1: Calculate units of ending inventory as follows: 1000 Total number of units purchased Less: Units sold Ending inventory units 600 400 Step 2: Calculate ending inventory in $, using FIFO method as follows: А 1 Date 2 23-Apr 15-Apr 4 Ending inventory B C D No. units Unit cost Total cost 270 $40 $10.800 130 $37 $4.810 400 $15,610 3 Calculations are shown below: A B C D 1 1 Date No. units Unit cost Total cost 2 43578 270 40 =B2%C2 3 43570 =400-B2 37 =B3*C3 4 Ending inventory =B2+B3 =D2+D3 Step 3: Calculate cost of goods sold as follows:

A A B C D 1 Date No. units Unit cost Total cost 2 1-Apr 280 $31 $8.680 3 15-Apr 450 $37 $16,650 4 23-Apr 270 $40 $10,800 5 Cost of goods available for sale $36,130 6 Deduct: Ending inventory $15,610 7 Cost of goods sold $20.520 Calculations are shown below: A B C 1 Date No. units Unit cost 2 43556 280 31 3 43570 450 37 4 43578 270 5 Cost of goods available for sale 6 Deduct: Ending inventory 7 Cost of goods sold D Total cost =B2*C2 =B3*C3 =B4*C4 =SUM(D2:D4) 15610 =D5-D6 40 Therefore, results can be summarized as follows: Ending inventory Cost of goods sold $15,610 $20,520