Question

Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:

Date	Activity	Quantity	Unit Price
5/1	Beginning Inventory	150	$10
5/5	Purchase	230	$12
5/15	Purchase	250	$14
5/25	Purchase	320	$16

Sales were 460 units at $20.  Using the FIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Answer 1

FIFO Method - Periodic Inventory

>> In FIFO Method first purchases are sold first.

>> Cost of Goods sold = ( 150 * $ 10 ) + ( 230 * $ 12 ) + ( 80 * $ 14 )

>> Cost of Goods sold = $ 5,380