Question

The following information applies to the questions displayed below.) Pam's Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 290 items at $97 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records. Date Mar. 5 Apr. 10 June 19 Sept. 16 Nov. 28 Transaction Purchased Sold Sold Purchased Description 270 items @ $105 155 items @ $209 285 items @ $209 220 items @ $112 145 items $214 Sold

Answer 1

Perpetual inventory record using FIFO inventory costing method: Purchases Cost of Goods Sold Inventory on Hand Date Activities Quantity Unit Cost Total cost Quantity Unit Cost Total cost Quantity Unit Cost Total cost Jan. 1 Beginning Inventory Mar. 5 Purchase 270 $ 105.00 $28,350 Apr. 10 Sales 155 S 97.00 $ 15,035 290 S 97.00 $28.130 290 S 97.00 $28.130 270 S 105.00 $28.350 135 S 97.00 $13.095 270 $ 105.00 $28.350 - S 97.00 $ - 120 $ 105.00 $12.600 120 $ 105.00 $12.600 220 $112.00 $ 24.640 June. 19 Sales 135 150 S 97.00 $ 105.00 $13,095 $15.750 Sept. 16 Purchase 220 $112.00 $ 24.640 Nov. 28 Sales 120 $ 105.00 $12.600 25 $112.00 $ 2.800 585 $59,280 $112.00 195 195 $21,840 $21.840 Totals 490 $ 52,990