Question

Mosher, Inc. had the following balances and transactions during 2017:

Beginning Merchandise Inventory as of January 1, 2017	100 units at $82
March 10	Sold 70 units
June 10	Purchased 200 units at $85
October 30	Sold 170 units

What would be reported for Ending Merchandise Inventory on the balance sheet at December 31, 2017 if the perpetual inventory system and the first-in, first-out inventory costing method are used?

Answer 1

ANSWER:

Date	Inventory purchased	inventory sold	balance
January 1	100 x $82	-	100 x $82 = $8200
March 10	-	70 x $82	30 x $82 = $2460
June 10	200 x $85	-	30 x $82 = $2460 200 x $85 = $17000
October 30	-	30 x $82 140 x $85	60 x $85 = $5100

Therefore,

ending inventory reported on the balance sheet at December 31, 2017 = 60 x $85 = $5100