Question

CALERATOR FESTEN ER VERSION ASSIGNMENT RESOURCES CHAPTER-ORIE EOS SO BQ Question 10 Founder Company many products. Gme is one of its populares Below is an analysis of the inventory purchases and sales of Grmo for the month of March. Flounder Company uses the perpetual inventory system Purchases Units Cost Sales Selling Price/ DO 54 160 $120 365 Beview Score Rene Results by the Obiective entory Purchase 4 Sales 3/10 Purchase Sale 3/19 3/25 Sales 3/30Purchase 126 $130 $1.30 $75 Using the assumption, late the amount charged to cost of goods sold for March Cost of sold - Type here to search STPM

Answer 1

answer: $22750

working notes

for the first sales at 3/4 for 84 units cost of goods sold= 84*$55=$4620

under FIFO principle the old balance of inventory will be first taken for the sales.

for the next sales at 3/16 for 126 units cost of good sold=(56*$55)+(70*$60)=$7280

out of 126 units 56 units is taken from the remaining balance of begining inventory (140-84=56) and 70 units is taken from the next purchase on inventory at 3/3

for the next sales at 3/19 for 98 units cost of goods sold=(14*$60)+(84*65)=$6300

out of 98 units 14 units is taken from the remaining balance of purchase at 3/3 (84-70=14) and 84 is taken from the purchase at 3/10

for the next sales at 3/25 for 70 units cost of goods sold=(70*$65)=$4550

70 units is taken from the purchase at 3/10

total cost of goods sold for march=$4620+$7280+$6300+$4550=$22750