Question

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 390 units. Ending inventory at January 31 totals 150 units.

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 390 units. Ending inventory at January 31 totals 150 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 350 80 110 Unit Cost $3.40 3.60 3.70 Required: Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold # of units Cost per unit $ 3.40 Cost of Goods Available for Sale $ 1,190 # of units sold Cost per unit cost of Goods Sold Inventory Balance # of units Cost per Ending in ending inventory unit Inventory 350 $ 3.40 $ 1,190 350 Beg. Inventory Purchases: January 9 January 25 Total 80 110 3.60 3.70 288 407 1,885 3.60 3.70 288 407 1,885 540 $ 0 540 $

Answer 1

b)
		cost of goods available for sale			Cost of good sold			ending invnetory
Periodic FIFO		#of	cost per	Cost of goods	#of	cost per	Cost of goods	#of	cost per	ending
		units	unit	available	units	unit	sold	units	unit	inventory
Beginning inventory		350	3.4	1,190	350	3.4	1,190
purchases:
9-Jan		80	3.6	288	40	3.6	144	40	3.6	144
25-Jan		110	3.7	407				110	3.7	407
total		540		1,885	390		1334	150		551