Question

The following are the transactions for the month of July.

		Units		Unit Cost				Unit Selling Price
July 1	Beginning Inventory	50			$	10
July 13	Purchase	250				13
July 25	Sold	(100	)					$	15
July 31	Ending Inventory	200

Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under FIFO. Assume a periodic inventory system is used.

	FIFO (Periodic) Units Cost per Unit Total Beginning Inventory 50 $10.00 $500 Purchases July 13 250 $13.00 3,250 Goods Available for Sale 3,750 Cost of Goods Sold Units from Beginning Inventory Units from July 13 Purchase Total Cost of Goods Sold 0 Ending Inventory FIFO (Periodic) Sales Cost of Goods Sold Gross Profit

Answer 1

FIFO (Periodic) Cost per Total units unit 50 10.00 500 13.00 250 300 3250 3750 Beginning Inventory Purchases: July 13 Purchase Goods Available for sale Cost of goods sold Units from Beginning inventory Units from July 13 Purchases Total Cost of goods Sold Total Ending inventory 10.00 13.00 50 50 100 200 1150 2600 FIFO (Periodic) Sales (100 * $15) Cost of goods sold Gross profit 1500 1150 350