Question

During 2018, a company sells 330 units of inventory for $88 each. The company has the following inventory purchase transactions for 2018: Date Transaction Number of Units 65 Unit Cost $64 Jan. 1. Beginning inventory May 5 Purchase Nov. 3 Purchase Total Cost $ 4,160 10,985 12,730 65 169 190 67 424 $27,875 Calculate ending inventory and cost of goods sold for 2018 assuming the company uses FIFO with a periodic inventory system. Ending inventory Cost of goods sold

Answer 1

Ending Inventory Cost of Goods Sold FIFO $ 6,298 $21,577 Notes: Production Units = 65+169+190 = 424 Ending Inventory Units = 424-330 = 94 Sale Units = 330 FIFO Method: Cost of Goods sold Particulars Jan. 1 Beginning Inventory May. 5 Purchase Nov. 3 Purchase Units 65 169 96 330 Unit Cost $ 64.00 $ 65.00 $ 67.00 $ $ $ Total 4,160 10,985 6,432 21,577 Ending Inventory Particulars Nov.3 purchase Total Units 94 94 Unit Cost $ 67.00 $ 6,298 6,298