Question

FIFO:

Required information Exercise 6-5A Calculate inventory amounts when costs are declining (LO6-3) [The following information applies to the questions displayed below.] During the year, Trombley Incorporated has the following inventory transactions. Number of Units Unit Cost $ 31 29 Date Transaction Jan. 1 Beginning inventory Mar. 4 Purchase Jun. 9 Purchase Nov. 11 Purchase 39 Total Cost $ 899 1,020 1,131 1,053 $4,103 For the entire year, the company sells 110 units of inventory for $39 each. Exercise 6-5A Part 1 Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units Cost per unit Cost of Goods Sold # of units Cost Ending per unit Inventory Beginning Inventory Purchases: Mar 04 Jun 09 Nov 11 Total

Answer 1

Schedule

FIFO	Cost of goods available for sale			Cost of goods sold			Ending inventory
	# of unit	Cost per unit	Total cost	# of unit	Cost per unit	Total cost	# of unit	Cost per unit	Total cost
Beginning inventory	29	31	899	29	31	899
Purchase
Apr 07	34	30	1020	34	30	1020
Jul 16	39	29	1131	39	29	1131
Oct 06	39	27	1053	8	27	216	31	27	837
Total	141		4103	110		3266	31		837

Sales revenue = 110*39 = 4290

Gross profit = 4290-3266 = 1024