QS 6-4 Perpetual: Inventory costing with FIFO LO P1

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 260 units. Ending inventory at January 31 totals 120 units.

	Units	Unit Cost
Beginning inventory on January 1	230	$	2.10
Purchase on January 9	50		2.30
Purchase on January 25	100		2.44

Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.

Perpetual FIFO: Goods purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 January 9 January 25 January 26 Totals