Solution: | ||||||||||||||
Cost of goods sold | 18,060 | |||||||||||||
Ending Inventory | 2,100 | |||||||||||||
Working Notes: | ||||||||||||||
FIFO | ||||||||||||||
Particulars | Opening Balance | Purchase | Sale | Closing | ||||||||||
Date | Transaction | Units | Rate | Amount | Units | Rate | Amount | Units | Rate | Amount | Units | Rate | Amount | |
Jan. 1 | Beginning inventory | 11.00 | 400.00 | 4,400.00 | - | - | - | - | - | - | 11.00 | 400.00 | 4,400.00 | |
Jan. 8 | Purchase | - | - | - | 20.00 | 410.00 | 8,200.00 | - | - | - | 11.00 | 400.00 | 4,400.00 | |
20.00 | 410.00 | 8,200.00 | ||||||||||||
Jan. 15 | Purchase | 11.00 | 400.00 | 4,400.00 | - | - | - | 11.00 | 400.00 | 4,400.00 | ||||
20.00 | 410.00 | 8,200.00 | 20.00 | 410.00 | 8,200.00 | |||||||||
18.00 | 420.00 | 7,560.00 | 18.00 | 420.00 | 7,560.00 | |||||||||
Jan. 19 | Sales | 11.00 | 400.00 | 4,400.00 | 11.00 | 400.00 | 4,400.00 | |||||||
20.00 | 410.00 | 8,200.00 | 20.00 | 410.00 | 8,200.00 | |||||||||
18.00 | 420.00 | 7,560.00 | 13.00 | 420.00 | 5,460.00 | 5.00 | 420.00 | 2,100.00 | ||||||
Total Cost of goods sold | 44.00 | 18,060.00 | 5.00 | 420.00 | 2,100.00 | |||||||||
Notes: | Under FIFO method goods which comes in system first are sold first , hence when 44 units sold it is sold out of 11 units of beginning , 20 units of Jan 8 and balance 13 units from purchase of Jan. 15 and we left with Ending inventory of 5 units from Jan. 15 purchase | Ending inventory | ||||||||||||
Hence | 11 x 400 | 4400 | ||||||||||||
5 x 420 | 2100 | 20 x 410 | 8200 | |||||||||||
Ending Inventory | 2100 | 13 x 420 | 5460 | |||||||||||
Cost of goods sold | 18060 | |||||||||||||
Please feel free to ask if anything about above solution in comment section of the question. |
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