Question

During 2021, a company sells 21 units of inventory. The company has the following inventory purchase transactions for 2021 Number Unit Total Date Jan. 1 Beginning inventory Sep. 8 Purchase Transaction of Units Cost $54 Cost 14 $ 756 840 $1,596 15 56 29 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO Ending inventory Cost of goods sold Next> < Prev 20 of 40 to search DELL

Answer 1

Answers

• Ending Inventory = $ 448
• Cost of Goods Sold = $ 1148

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	14	$                54.00	$                            756.00	14	$               54.00	$                     756.00	0	$                 54.00	$                         -
Purchases:
08-Sep	15	$                56.00	$                            840.00	7	$               56.00	$                     392.00	8	$                 56.00	$                448.00
TOTAL	29		$                        1,596.00	21		$                 1,148.00	8		$                448.00