Question

Sandra's Purse Boutique has the following transactions related to its top-selling Gucc/purse for the month of October Sandra's Purse Boutique uses a periodic inventory system. Date Total Cost Units 6 Unit Cost $790 $ 4,740 Transactions Beginning inventory Sale Purchase Sale Purchase Sale Purchase 800 October 1 October 4 October 10 October 13 October 20 October 28 October 30 4,000 00 Awit 810 3,240 820 6,560 $18,540 2. Using FIFO, calculate ending inventory and cost of goods sold at October 31. Ending inventory Cost of goods sold

Answer 1

rate positively .. let me know if you need any clarification..

		Qty	Rate	Amt
Date (October)
1	Beginning	6	790	4740
10	Pur	5	800	4000
20	Pur	4	810	3240
30	Pur	8	820	6560
		23		18540
Unit sold =		14
4+3+7
Ending inventory		9
Ans -
Computation of ending inventory
Ending inventory under FIFO will be based on last purchase price
Ending inventory =		8*820+1*810		7370
Cost of goods sold = (18540-7370)				11170