Use the information below to calculate the cost of goods sold and the cost of en

Question

Use the information below to calculate the cost of goods sold and the cost of ending inventory-using FIFO (10 Points). 1) Cost of Goods Sold-Units- Ending inventory-Units Cost $ Cost $ a. b. Total Units Sold Sale Price Total Date Activit Units Cost 1-Jan Beginning Inventory 10-Jan Purchase 15-Jan Purchase 17-Jan Sale 21-Jan Purchase 25-Jan Purchase 50010 5,000 200 $11 2,200 100 12 1,200 400 $ 30 12,000 200 12 2,400 500 $ 14$7,000 27-Jan Sale 600 30 18,000 otal Show your work! 2) Use the following information to complete a bank reconciliation (10 Points): - The December 31 bank statement has an ending balance of $14,500 and the cash account shows a $16,000 debit balance. Outstanding checks as of December 31 were $2,500 December 31 cash receipts of $3,000 were placed in the night depository after banking hours and were not on the December 31 bank statement. A debit memorandum for $1,000 refers to a NSF check from a customer. - -

Explanation / Answer

Answer: Schedule of Cost of goods sold and ending inventory FIFO Cost of goods available for sales Cost of Goods sold Ending Inventory Note: # of units Average cost per unit Cost of goods available for sale # of units Average cost per unit Cost of goods available for sale # of units Average cost per unit Ending Inventory Beginning Inventory 500 $            10 $      5,000 500 $            10 $      5,000 Purchases/Sales 10-Jan 200 $            11 $      2,200 500 $            10 $      5,000 200 $            11 $      2,200 $      7,200 15-Jan 100 $            12 $      1,200 500 $            10 $      5,000 200 $            11 $      2,200 100 $            12 $      1,200 $      8,400 17-Jan 400 $            10 $      4,000 100 $            10 $      1,000 400 Units from Beginning inventory would be sold first and 100 units would be left in inventory. 200 $            11 $      2,200 100 $            12 $      1,200 $      4,400 21-Jan 200 $            12 $      2,400 100 $            10 $      1,000 200 $            11 $      2,200 100 $            12 $      1,200 200 $            12 $      2,400 $      6,800 25-Jan 500 $            14 $      7,000 100 10 $      1,000 200 11 $      2,200 100 12 $      1,200 200 12 $      2,400 500 14 $      7,000 $    13,800 27-Jan 100 10 $      1,000 500 14 $      7,000 Out of 600 units sold 100 would be from beginning inventory, 200 would be from units purchased on 10 Jan, 100 units would be from 15 Jan purchases, 200 units would be from Jan 20 purchases 200 11 $      2,200 Since we are using FIFO 500 units from units prchased on 27th January would be left in inventory. 100 12 $      1,200 200 12 $      2,400 $      7,000 $    17,800 $    10,800 $      7,000

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