A company had the following transactions pertaining to Product A, there was no b

Question

A company had the following transactions pertaining to Product A, there was no beginning inventory balance.

Date Activity Units acquired at cost Units Sold
May 1 Purchase 380 units@$ 15
May 5 Purchase 270 units @ $17
May 10 Sale 400 units
May 20 Purchase 300 units@ $22
May 25 Sale 400 units

Prepare calculations showing the amounts that should be assigned to the ending inventory and to cost of goods sold assuming a FIFO cost basis.

Explanation / Answer

no beginning inventory balance calculations assuming First in First Out basiss (FIFO) 1>380*16=6080 2>270*17=4590 3>400 (6080+17*20) = 6080+340 =6420 4>300*22=6600 5>400 (250*17+50*22)=5350 Cost of goods sold =6420+5350 =11770$ ending inventory=250 units of 22$ =5500$ cheers :)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.