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Question 4 ABC Appliance Shop Inc. has the following data for inventory, purchases, and sales of merchandise for December for one of the items the
Question 4
ABC Appliance Shop Inc. has the following data for inventory, purchases, and sales of merchandise for December for one of the items the company sells:
Activity Units Purchase Price (per unit) Sale Price (per unit)
Beginning inventory 44 $80.00
Purchase 1, Dec. 4 27 91.00
Sale 1, Dec. 8 18 $150.00
Sale 2, Dec. 10 13 $110.00
Purchase 2, Dec. 17 16 92.00
Sale 3, Dec. 20 14 $140.00
ABC Appliance Shop Inc. uses a perpetual inventory system. All purchases and sales were for cash.
Required:
- Compute cost of goods sold under the FIFO method.
- Cost of ending inventory using the FIFO method.
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