Transactions for the month of June were: Purchases Sales June 1 (balance) 1,600
ID: 2446026 • Letter: T
Question
Transactions for the month of June were:
Purchases
Sales
June 1
(balance) 1,600 @
$3.20
June 2
1,200 @
$5.50
3
4,400 @
3.10
6
3,200 @
5.50
7
2,400 @
3.30
9
2,000 @
5.50
15
3,600 @
3.40
10
800 @
6.00
22
1,000 @
3.50
18
2,800 @
6.00
25
400 @
6.00
Assuming that perpetual inventory records are kept in dollars, the ending inventory on a FIFO basis is
Purchases
Sales
June 1
(balance) 1,600 @
$3.20
June 2
1,200 @
$5.50
3
4,400 @
3.10
6
3,200 @
5.50
7
2,400 @
3.30
9
2,000 @
5.50
15
3,600 @
3.40
10
800 @
6.00
22
1,000 @
3.50
18
2,800 @
6.00
25
400 @
6.00
Explanation / Answer
Computation of Ending inventory Using FIFO basis
Receipts Issues Balances
400
4400
3.2
3.1
1280
13640
4960
1600
2400
3.1
3.3
4960
7920
1200
3600
3.3
3.4
3960
12240
2000
1000
3.4
3.5
6800
3500
1600
1000
3.4
3.5
5440
3500
Ending inventory 1600 units @ 3.4 = 5440
1000 units @ 3.5 = 3500.
Date Units Rate Amount Units Rate amount Units Rate Amount Jun 1 1600 3.2 5120 - - - 1600 3.2 5120 2 - - - 1200 5.5 6600 400 3.2 1280 3 4400 3.1 13640 - - -400
4400
3.2
3.1
1280
13640
6 - - - 3200 5.50 17600 1600 3.14960
7 2400 3.30 7920 - - -1600
2400
3.1
3.3
4960
7920
9 - - - 2000 5.5 11000 2000 3.3 6600 10 - - - 800 6 4800 1200 3.3 3960 15 3600 3.4 12240 - - -1200
3600
3.3
3.4
3960
12240
18 - - - 2800 6 16800 2000 3.4 6800 22 1000 3.5 3500 - - -2000
1000
3.4
3.5
6800
3500
25 - - - 400 6 24001600
1000
3.4
3.5
5440
3500
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