TDS Company uses a perpetual inventory system. It entered into the following pur
ID: 2539955 • Letter: T
Question
TDS Company uses a perpetual inventory system. It entered into the following purchase and sale transactions for April: Date Activity Units acquired at cost Units sold at retail April 1 beginning inventory 20 units @ $3,000/unit April 5 purchase 30 units @ $3,500/unit April 9 sale 35 units @ $12,000/unit April 18 purchase 5 units @ $4,500/unit April 25 purchase 10 units @ $4,800/unit April 29 sale 25 units @ $14,000/unit TOTALS 65 units 60 units Compute the cost of goods sold for the month using FIFO: $215,500 $220,500 $770,000 $211,500 $24,000 $235,500
Explanation / Answer
Answer:- The cost of goods sold for the month using FIFO:-$211500.
Explanation:-
FIFO Method Goods purchased Cost of goods sold Inventory balance Date # of units Cost per unit # of units sold Cost per unit Cost of goods sold # of units Cost per unit Inventory balance Apr-01 20 3000 60000 Apr-05 30 3500 20 3000 60000 30 3500 105000 Apr-09 20 3000 60000 15 3500 52500 15 3500 52500 Apr-18 5 4500 15 3500 52500 5 4500 22500 Apr-25 10 4800 15 3500 52500 5 4500 22500 10 4800 48000 Mar-29 15 3500 52500 5 4800 24000 5 4500 22500 5 4800 24000 Totals 60 211500Related Questions
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