Question

Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Unit Total Cost of Goods Sold Unit Total Quantity Cost Cost Inventory on Hand Unit Total Quantity Cost Cost Date Quantity Cost Cost i Data Table Aug. 1 Units Unit Cost Unit Sales Price $ 85 45 90 85 $ Aug. 3 Sale 8 Purchase 21 Sale 30 Purchase 54 88 Print Done Totals

Answer 1

FIFO METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Aug, 01	Beginning inventory							50	$               35	$1,750
Aug, 03	Sales				45	$                   35	$1,575	5	$               35	$175
Aug, 08	Purchases	90	$                   54	$4,860				5	$               35	$175
								90	$               54	$4,860
Aug, 21	Sales				5	$                   35	$175
					80	$                   54	$4,320	10	$               54	$540
Aug, 30	Purchases	15	$                   58	$870				10	$               54	$540
								15	$               58	$870
		105		$5,730	130		$6,070	25		$1,410