Question

Required information M7-11 to 13 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3] [The following information applies to the questions displayed below.) In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 400 units at $7 on January 1, (2) 550 units at $8 on January 8, and (3) 850 units at $9 on January 29. M7-11 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Periodic FIFO (LO 7-3] Assume 1,060 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under FIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.) FIFO $ 14,850 Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold

Answer 1

Cost of Goods available for sale (400*7)+(550*8)+(850*9)	14,850
Ending inventory (850*9)+(210*8)	9330
Cost of Goods Sold (14,850 - 9330)	5520