Need help badly, i\'m up to my neck in make-up work due being sick. I need to fi

Question

Need help badly, i'm up to my neck in make-up work due being sick. I need to finish this today as my semester ends today. Anybody please help! I would really appreciate it. Thank you so very much. Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 72 units @ $18 7 Sale 59 units 15 Purchase 60 units @ $19 24 Sale 21 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a)the cost of goods sold on October 24 and (b) the inventory on October 31.

a. Cost of goods sold on October 24 ?

b. Inventory on October 31 ?

Explanation / Answer

Solution:-

Sale Units on Oct 24 = 21 Units

Stock as on October 24

1. 13 Units @18 (72 Units - 59 Units Sold)

2. 60 Unts @19 (Purchased on 15th Oct)

Now, as FIFO method to be used, So Out of 21 units sold, 13 units was @ 18 and remaining @ 19 as per the Inventory

a) Cost of Goods Sold-

13 units @ 18 =$234

(21-13) @19 = $152

Total = $386

b) Inventory on October 31

Total Sales Units in October = 59+21 = 80 Units

And Inventor at the the beginnig was 72 units

So Beginning inventory already finished.

So the closing invesntory will be

Units at the beginnig + Purchased - Sold

= 72+60 - 80

=52 Units

And the above closing investory ins from the lot purchasedon Oct15

Inventory = 52*$19 = $988

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