Question

Shown below is activity for one of the products of Denver Office Equipment: Doints Skipped January 1 balance, 530 units e$55 $29,150 Purchases: January 530 units 10: $60 January 1,060 units @ $64 20: Sales: January 820 units 12: January 650 units 28: eBook Print References Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses FIFO. Ending inventory Cost of goods sold

Answer 1

FIFO method :
Date	Purchase			Sale ( at cost )			Balance
	Units	Unit cost	Total cost	Units	Unit cost	Total cost	Units	Unit cost	Total cost
January 1							530	55	29150
January 10	530	60	31800				530	55	29150
							530	60	31800
January 12				530	55	29150	240	60	14400
				290	60	17400
January 20	1060	64	67840				240	60	14400
							1060	64	67840
January 28				240	60	14400	650	64	41600
				410	64	26240

Ending inventory	41600
Cost of goods sold = 29150 + 17400 + 14400 + 26240	87190