1. July 1.......Beginning Inventory..........20 units @ $20 = $400 July 7.......

Question

1.

July 1.......Beginning Inventory..........20 units @ $20 = $400

July 7.......Purchases..........................70 units @ $21 = $1,470

July 22.....Purchases..........................10 units @ $22 = $220
Total cost of goods available........................................$2,090
A physical count of merchandise inventory on July 30 reveals that there are 35 units on hand.

Using the FIFO inventory method, the amount allocated to ending inventory for July is

2. Use the inventory information below for the month of July to answer the following question:

July 1 Beginning Inventory 20 units at $19 each

July 7 Purchase 70 units at $20 each

July 22 Purchase 10 units at $22 each

A physical count of merchandise inventory on July 31 reveals that there are 35 units on hand.

Using the LIFO inventory method, the amount allocated to COST OF GOODS SOLD for July is

3.Use the inventory information below for the month of July to answer the following question:

Explanation / Answer

Using the FIFO method, the ending inventory consists of the more recent purchased items.

There are 35 units left. Of those, 10 came from the July 22 purchase, and 25 came from the July 7 purchase.

Ending Inventory (FIFO)

25 @ $21 = $ 525
10 @ $22 = $ 220
----------------------------
Total . . . . . $ 745

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