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(%) 35-3 (similar to) Question Help Keira\'s Sports uses the FIFO inventory meth

ID: 2337913 • Letter: #

Question

(%) 35-3 (similar to) Question Help Keira's Sports uses the FIFO inventory method. Keira's Sports started May with 6 helmets that cost S56 each. On May 19, Keira's Sports bought 15 helmets at $57 each. On May 28, Keira's Sports sold 11 helmets. Prepare a perpetual inventory record for Keira's Sports. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) FIFO: Purchases Cost of goods soldInventory on hand Unit Total Date Qty CostCostQty Cost CostQty Cost Cost Unit Total Unit Total May 6 $ 56 S 336 19 15 $ 57 S 855

Explanation / Answer

Qty of inventory purchased = 15

Total cost of inventory purchased = $855

Qty of inventory sold = 11

Total cost of inventory sold = $336 + 285 = $621

Qty of inventory on hand = 10

Total cost of inventory on hand = $570

FIFO Purchases Cost of goods sold Inventory on hand Date Qty Unit cost Total cost Qty Unit cost Total cost Qty Unit cost Total cost May 1 6 $56 $336 May 19 15 $57 $855 6 $56 $336 15 $57 $855 May 28 6 $56 $336 10 $57 $570 5 $57 $285