Question
Q1. XYZ Company uses a periodic inventory system. The beginning balance of inventory and the purchases made by XYZ during the month of July are
Q1.XYZ Company uses a periodic inventory system. The beginning balance of inventory and the purchases made by XYZ during the month of July are given below:
| Date | Description | Units | Unit cost | Total cost |
| July 01 | Beginning inventory | 500 | $20 | $10,000 |
| July 18 | Inventory purchased | 800 | $24 | $19,200 |
| July 25 | Inventory purchased | 700 | $26 | $18,200 |
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| Total | 2,000 | $47,400 | ||
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The XYZ Company sold 1,400 units during the month of July.
Required: Compute inventory on 31st July and cost of goods sold for the month of July using FIFO inventory costing method.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
