Brief Exercise 6-6 (Part Level Submission) Pronghorn Limited uses a perpetual in

Question

Brief Exercise 6-6 (Part Level Submission) Pronghorn Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations: Date Explanation Units Unit Cost Total Cost Balance in Units 253 762 478 1,370 1,035 Aug. 2 Purchases 253 509 (284) 892 (335) $69 $17,457 104 52,936 3 Purchases 10 Sales 15 Purchases 25 Sales 126 112,392 (a) Calculate the cost of goods sold and ending inventory using the FIFO cost method. Cost of goods sold Ending inventory LINK TO TEXT

Explanation / Answer

Perpetual inventory system: FIFO

253 units * $69 = $17457

509 units * $104 = $52936

253 units * $69 = $17457

31 units * $104 = $3224

478 units * $104 = $49712

892 units * $126 = $112392

143 units * $104 = $14872

892 units * $126 = $112392

Cost of goods sold $55521

Ending inventory $127264.

Date Cost of goods available for sale Cost of goods sold Ending inventory Aug 2 253 units * $69 = $17457 253 units * $69 = $17457 3 509 units * $104 = $52936

253 units * $69 = $17457

509 units * $104 = $52936

10

253 units * $69 = $17457

31 units * $104 = $3224

478 units * $104 = $49712 15 892 units * $126 = $112392

478 units * $104 = $49712

892 units * $126 = $112392

25 335 units * $104 = $34840

143 units * $104 = $14872

892 units * $126 = $112392

Cost of goods sold = $55521 Ending inventory = $127264

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