E6-20 (similar to)

May 1 Beginning Merchandise Inventory 20 Tires @ $63 each

May 11 purchase 12 tires @ $87 each

May 23 sale 18 Tires @ $102 each

May 26 Purchase 14 Tires @ $90 each

May 29 sale 16 Tires @ $102 each

Assume that

JL

Tire Store completed the following perpetual inventory transactions for a line of tires:

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(Click the icon to view the transactions.)Read the requirements.

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Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.

Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
May 1
11
23
26
29
Totals

Enter any number in the edit fields and then click Check Answer.