Question

Metlock Company uses a periodic inventory system. For April, when the company sold 650 units, the following information is available. Total Cost April 1 inventory April 15 purchase April 23 purchase Units 310 390 300 1,000 Unit Cost $20 24 26 $ 6,200 9,360 7,800 $23,360 Compute the April 30 inventory and the April cost of goods sold using the FIFO method. Ending inventory $ Cost of goods sold $

Answer 1

FIFO Method is First in First Out

Inventory	Utilisation /Sold	Remaining/Ending
	Units	Unit Cost	Total Cost	Units	Rate	Total Cost	Units	Rate	Total
April 1 Inventory	310	20	$          6,200	310	20	$          6,200	0	20	$               -
April 15 Purchases	390	24	$          9,360	340	24	$          8,160	50	24	$        1,200
April 23 Purchases	300	26	$          7,800				300	26	$        7,800
Total	1000		$        23,360	650		$        14,360	350		$        9,000

Ending Inventory is $ 9,000

Cost of Goods Sold is $ 14360