P Company had a beginning inventory of 93 units of Product RST at a cost of $8 p

Question

P Company had a beginning inventory of 93 units of Product RST at a cost of $8 per unit.

During the year, purchases were:

Feb. 20 603 units at $9

Aug. 12 409 units at $11

May 5 540 units at $10

Dec. 8 110 units at $12

P Company uses a periodic inventory system. Sales totaled 1,470 units.

Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO). (Round answers to 0 decimal places, e.g. 150.)

FIFO:

The ending inventory = _______

The cost of goods sold = _______

Explanation / Answer

FIFO Cost of goods sold Units Unit cost Total Sale from beginning inventory 93 8 744 sSale from purchase Feb 20 603 9 5427 Sale from purchase May 5 540 10 5400 Sale from purchase Aug 12 234 11 2574 1470 14145 Ending inventory Units Unit cost Total Inventory from purchase Aug 12 175 11 1925 Inventory from purchase Dec 8 110 12 1320 285 3245 Ending inventory is $3245 Cost of goods sold=$14145

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

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