QS 6-4 Perpetual: Inventory costing with FIFO P1 A company reports the following
ID: 2544785 • Letter: Q
Question
QS 6-4
Perpetual: Inventory costing with FIFO
P1
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the com-pany sells 350 units. Ending inventory at January 31 totals 150 units.
Required
Assume the perpetual inventory system is used and then determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. (Round per unit costs and inventory amounts to cents.)
Units Unlt Cost Beginning inventory on January 1 Purchase on January 9. Purchase on January 25 80 100 3.20 3.34Explanation / Answer
CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD PURHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost January, 01 Inventory 320 $3 $960 320 $3 $960 January, 09 Purchases 80 3.2 $256 320 $3 $960 80 3.2 $256 January, 25 Purchases 100 $3 $334 320 $3 $960 80 3.2 $256 100 $3 $334 Available For sale 500 320 $3 $960 Less: Sales (500 units - 150 Units) 350 30 3.2 $96 50 3.2 $160 Balance Units 150 100 $3 $334 Total 350 1056 150 494 Unit Amoun COGS as per FIFO Method 350 $1,056.00 Closing Balance 150 494
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.