Question

Assume

Alpine BikesAlpine Bikes ,

Inc., bought and sold a line of mountain bikes during

OctoberOctober

as follows:

Alpine BikesAlpine Bikes ,vbought and sold a line of mountain bikes during

October

Inc., uses the perpetual inventory system.

Date		Item	Quantity	Unit Cost
Oct	1	Balance	12	$265
	5	Sale	9
	12	Purchase	15	$271
	21	Sale	7
	30	Sale	5

Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

FIFO:		Purchases			Cost of goods sold			Inventory on hand
			Unit	Total		Unit	Total		Unit	Total
Date		Qty	Cost	Cost	Qty	Cost	Cost	Qty	Cost	Cost
Oct	1	-----	-----	-----	-----	-------	-----

Answer 1

Answer

FIFO:		Purchases			Cost of goods sold			Inventory on hand
			Unit	Total		Unit	Total		Unit	Total
Date		Qty	Cost	Cost	Qty	Cost	Cost	Qty	Cost	Cost
Oct	1	-----	-----	-----	-----	-------	-----	12	$265	$3,180
Oct	5				9	$265	$2,385	3	$265	$795
Oct	12	15	$271	$4,065				3	$265	$795
								15	$271	$4,065
Oct	21				3	$265	$795	11	$271	$2,981
					4	$271	$1,084
Oct	30				5	$271	$1,355	6	$271	$1,626
Total				$4,065	21		$5,619	6		$1,626