Required:

Assume the perpetual inventory system is used and then determine the costs assigned to endinginventory when costs are assigned based on the FIFO method.

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 370 units. Ending inventory at January 31 totals 150 units. Units Unit Cost Beginning inventory on January 1 330 $ 3. 20 Purchase on January 9 80 3.40 Purchase on January 25 110 3.50 Required: Assume the perpetual inventory system is used and then 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 per # of units Cost per Cost of Goods # of units Cost per Inventory units nit sold unit Sold unit Balance January 1 330 @ $ $ 1,056.00 January 9 80 @ $ 3.40 330 @ $ 3.20 = $ 1,056.00 + 80 @ $ 3.40 = 272.00 $1,328.00 January 25 110 @ $ 3.50 330 @ $ 3.20 = $ 1,056.00 80 @ $ 3.40 = 272.00 110 6 3.50 385.00 $ 1,713.00 January 26 330 @ $ 3.20 = $ 1,056.00 3.20 = 80 @ 3.40 272.00 $ 3.40 110 $ 3.50 = 385.00 a $ 3.50 Totals $1,713.00