Question

The Brentwood Company sells blankets for $60 each. The following was taken from the inventory records during the May. The company sold 20 blankets in the month of may. Date May 5 10 units @ $30, May 12 20 units @ $35, and 20 units @ $40. Assuming that the company uses the periodic inventory system, determine the Ending Inventory for the month of May using the FIFO inventory cost method.

Answer 1

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The Brentwood Company
Periodic FIFO	Units	Cost per unit	Total
Purchases May 5	10.00	30.00	300.00
Purchases May 12	20.00	35.00	700.00
Purchases May 12	20.00	40.00	800.00
Goods available for sale	50.00		1,800.00
Cost of Goods sold
Units from Purchases on May 5	10.00	30.00	300.00
Units from Purchases on May 12	10.00	35.00	350.00
Total Cost of Goods sold	20.00		650.00
Inventory on 31st May	30.00		1,150.00