Question

paily Udscu Un esa we product descnbed LIVIU I su PLULILULAUL above Problem 2 Below is a summary of beginning inventory, purchases, and sales. A physical count at December 31 revealed that there were 2,500 units on hand. Inventory, 1/1 1,500 units @ $12.00 Purchases: January 5 March 12 July 24 November 30 2,50 units at$11.60 800 units at $12.50 1,200 units at$ 12.20 400 units at $12.60 Sales: February 17 April 19 June 10 October 25 1,000 units at$18.00 1,500 units at$18.00 1,000 units at$20.00 400 units at $20.00 Calculate cost of goods sold and ending inventory using FIFO MacBook Air

Answer 1

Correct Answer:

	FIFO
Cost of Goods Sold	$ 47,430.00
Ending Inventory	$ 3,150.00

Working:

Cost of Goods Available for sale
		Units	Cost per unit	value
Beginning Inventory	01-Jan	1500	$                     12.00	$                 18,000.00
Purchases	05-Jan	250	$                     11.60	$                   2,900.00
Purchases	12-Mar	800	$                     12.50	$                 10,000.00
Purchases	24-Jul	1200	$                     12.20	$                 14,640.00
Purchases	30-Nov	400	$                     12.60	$                   5,040.00
Total		4150		$                 50,580.00

FIFO
A	Total Units Available for sale			4150		$    50,580.00
	Units Sold			3900
	Ending Inventory Units			250
	Valuation
	Cost of Goods Sold		1500		$                         12.00	$    18,000.00
			250		$                         11.60	$      2,900.00
			800		$                         12.50	$    10,000.00
			1200		$                         12.20	$    14,640.00
			150		$                         12.60	$      1,890.00
						$                   -
B	Cost of Goods Sold		3900	units		$    47,430.00
A-B	Ending Inventory		250	units		$      3,150.00

End of answer.

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