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

Question

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item PK95 are as follows: August 1 Inventory 50 units @ $18 9 Sale 34 units 13 Purchase 45 units @ $19 28 Sale 21 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on August 28 and (b) the inventory on August 31. a. Cost of merchandise sold on August 28 $ b. Inventory on August 31 $

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales for Item PK95 are as follows:

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on August 28 and (b) the inventory on August 31.

Explanation / Answer

Calculate cost of merchandise sold and ending inventory :

a) Cost of merchandise sold on August 28 = (16*18+5*19) = 383

b) Inventory on august 31 = 40*19 = 760

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