Question
If Exxon uses FIFO for its inventory valuation, calculate the cost of ending inventory and cost of goods sold if ending inventory is 110 barrels
If Exxon uses FIFO for its inventory valuation, calculate the cost of ending inventory and cost of goods sold if ending inventory is 110 barrels of crude oil.
| Beginning inventory purchases | Barrels | Barrel cost | Total Cost |
|---|---|---|---|
| Beginning inventory - January 1, 2021 | 125 | 0.95 | $ 11,875.00 |
| 1-March | 50 | 101 | $ 5,050.00 |
| 1-June | 65 | 98 | $ 6,370.00 |
| 1-September | 75 | 90 | $ 6,750.00 |
| 1-December | 50 | 103 | $ 5,150.00 |
| Ending inventory | 110 |
Required:
Please use the above information to answer the following:
What is the total cost?
What is the ending inventory purchase from December?
What is the ending inventory units from September?
What is the ending inventory purchase from September?
What is the total ending inventory?
Calculate cost of goods sold for 2021 using FIFO and 110 barrels in ending inventory.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the cost of ending inventory and the cost of goods sold using the FIFO FirstIn FirstOut method we need to determine the order in which the inventory was sold Based on the information prov...
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Step: 3
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Financial Accounting
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
12th edition
134725980, 9780134726656 , 978-0134725987
