Refer to the information provided for Portey. If Portey uses the FIFO inventory

Question

Refer to the information provided for Portey. If Portey uses the FIFO inventory costing method, cost of goods sold for the month of June is:

Portey Company
Portey uses a perpetual inventory system and had the following inventory transactions for the month of June.
June 1 On hand, 100 units at $9.00 each $900.00 4 Purchased 120 units at $9.10 each 1,092.00 5 Sold 150 units 10 Purchased 100 units at $9.50 each 950.00 24 Sold 60 units Total cost of goods available for sale 2,942.00 30 On hand, 110 units

Explanation / Answer

As per FIFO;COGS=[(100*$9)+(50*$9)]+(60 units@$9.1)

=$1901(B).

As per FIFO;goods purchased first are sold off first.Hence 150 units sold would consist of 100 units as on June 1 and the balance (150-100)=50 units purchased on June 4.
Hence remaining inventory as on June 4=(120-50)=70 units.

Sale of 60 units would be out of 70 units of June 4.

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

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