Question

Perpetual Inventory Using FIFO Beginning Inventory purchases, and sales for Item 1901 are as follows: January 1 Inventory 50 units $18 37 units Purchase 33 units $20 19 units A patalinventory system and using the first in wout (FFO) method, determine a. Cost of merchandise sold on January 28 the cost of merchandise sold on January 28 and (b) the Inventory on January 31 b. Inventory on January 31

Answer 1

Under FIFO Method :
	Goods purchased			Cost of Goods sold			Ending Inventory
Date	NO of Units	Per Unit	Total	NO of Units	Per Unit	Total	NO of Units	Per Unit	Total
01-Jan	210	$ 13.50	$ 2,835.00				50	$ 18.00	$    900.00
09-Jan				37	$ 18.00	$    666.00	13	$ 18.00	$    234.00
13-Jan	33	$ 20.00	$    660.00				13	$ 18.00	$    234.00
							33	$ 20.00	$    660.00
28-Jan				13	$ 18.00	$    234.00	0	$ 18.00	$          -
				6	$ 20.00	$    120.00	27	$ 20.00	$    540.00
				56		$ 1,020.00	27		$    540.00
Question (a)	Cost of Goods Sold on Jan 28th is 234+120 = 354
Question (b)	Inventory as on 31st January is $ 540
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