CH 6

QS 6-5 (Algo) Perpetual: Inventory costing with FIFO LO PI Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. Goods purchased Perpetual FIFO: Cost of Goods Sold # of Cost per Cost of Goods units unit Sold sold Date Cost per Inventory Balance Inventory # of units unit Balance # of units Cost per unit January 1 January 9 Total January 9 $ 0.00 January 25 Total January 25 January 26 Total January 26 Required information Use the following information for the Quick Study below. (Algo) (5-7) [The following information applies to the questions displayed below.] A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 270 units. Ending inventory at January 31 totals 130 units. Units Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Unit Cost $ 2.20 2.40 2.54 60 100 QS 6-5 (Algo) Perpetual: Inventory costing with FIFO LO P1 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method