Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Ite

Question

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item ER27 are as follows: May 1 Inventory 9 Sale 13 Purchase 28 Sale 36 units @ $20 27 units 27 units $23 17 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) th 28 and (b) the inventory on May 31. a. Cost of merchandise sold on May 28 b. Inventory on May 31 x Feedback Check My Work a When the FIFO method is used, costs are included in cost of merchandise sold in the order in which they were j terms of "layers Determine how much inventory remains from each layer after each sale. b. The ending inventory is made up of the most recent purchases

Explanation / Answer

a. Cost of merchandise sold on May 28 = 9*20+8*23=$364.

b. Inventory on May 31=36-27+27-17=19*$23=$437

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