Question

Can you please explain how you get to the answer? I have been trying to figure this out all day. Thanks!

The periodic inventory records of Halton Prosthetics indicate the following for the month of October: EE (Click the icon to view the inventory records.) At October 31, Halton counts nine units of inventory on hand Compute ending merchandise inventory and cost of goods sold for Halton using the FIFO inventory costing method FIFO Cost Data Table Ending Merchandise Inventory Cost of Goods Sold Oct. 1 Beginning merchandise inventory18 units$55 each 5 units@ $ 60 each 2 units $61 each 11 units$ 62 each 8 Purchase 15 Purchase 26 Purchase Print Done

Answer 1

FIFO Method

Step 1. Ending inventory

Date	Units	Unit cost	Total cost
Oct. 26	9	$62	$558

Step 2. Cost of goods sold

Cost of goods available for sale = 18 x 55 + 15 x 60 + 12 x 61 + 11 x 62

= 990 + 900 + 732 + 682

= $3,304

Cost of goods available for sale    $3,304

Less: Ending inventory                   - $558

Cost of goods sold                           $2,746

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