Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 440 units. Ending Inventory
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 440 units. Ending Inventory at January 31 totals 170 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 $ 3.90 Unita 400 Unit Cost 90 120 4.10 4.20 Required: Assume the perpetual Inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. Perpetual FIFO: Goods purchased Cost of Goods Sold # of Date # of units Cost per unit units sold Cost per Cost of Goods unit Sold # of units Inventory Balance Cost per unit Inventory Balance January 1 400 at $ 3.90 $1,560.00 90 at $ 4.10 400 at $ 3.90 $1,560.00 January 9 90 at $ 4.10 = 369.00 Total January 9 $1,929.00 120 at $ 4.20 400 at $ 3,90 = $1,560.00 January 25 90 at $4.10 369.00 120 at $ 4.20 504.00 Total January 25 at $ 3.90 $ 0.00 January 26 at $ 4.10 0.00 at $ 4.20- 0.00 Total January 26 $2,433.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started