Question

Salem Sportwears uses the FIFO inventory method. Salem Sportwears started October with 5 helmets that cost $56 each. On October 19, Salem Sportwears bought 11 helmets at $51 each. On October 28, Salem Sportwears sold 9 helmets. Prepare a perpetual inventory record for Salem Sportwears. 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 Unit Total Cost of goods sold Unit Total Qty Cost Cost Inventory on hand Unit Total Cost Cost Date Qty Cost Cost Qty Oct 1 19 28 Total

Answer 1

FIFO:

	Purchases			Cost of goods sold			Inventory on hand
Date	Qty	Unit Cost	Total Cost	Qty	Unit Cost	Total Cost	Qty	Unit Cost	Total Cost
Oct 1							5	$56	$280
19	11	$51	$561				5	$56	$280
							11	$51	$561
28				5	$56	$280
				4	$51	$204	7	$51	$357
Total	11		$561	9		$484	7		$357