Question
A company's inventory records indicate the following data for the month of April: April 1 Beginning 350 units at $18 each April 5 Purchase 290
A company's inventory records indicate the following data for the month of April:
| April 1 | Beginning | 350 units at $18 each |
| April 5 | Purchase | 290 units at $20 each |
| April 9 | Sale | 500 units at $55 each |
| April 14 | Purchase | 250 units at $22 each |
| April 20 | Sale | 200 units at $55 each |
| April 30 | Purchase | 240 units at $25 each |
If the company uses the first-in, first-out (FIFO) method and the perpetual inventory system, what would be the cost of the ending inventory?
Answer:
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| Purchases | Sales | Balance | ||||||
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| Units | Unit cost | Total | Units | Unit cost | Total | Units | Unit cost | Total |
| 4/1 |
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| 4/5 |
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| 4/9 |
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| 4/14 |
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| 4/20 |
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| 4/30 |
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
