Question

Cornerstone Exercise 6-30 (Algorithmic) Inventory Costing Methods: Periodic FIFO (Appendix 6B) Bordeaux Company has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost Units Sold at Retail Beginning Inventory June 1 9 150 units @ $10 = $1,500 200 units @ $12 = $2,400 Purchase 1 14 Sale 1 300 units @ $25 22 Purchase 2 250 units @ $18 = $4,500 29 Sale 2 225 units @ $25 Assume that Bordeaux uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the FIFO inventory costing method. Cost of goods sold Cost of ending inventory

Answer 1

Answer

· Cost of Goods Sold = $ 7050

· Cost of ending inventory = $ 1350

FIFO	Cost of Goods available for sale	Cost of Goods Sold	Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	150	$                10.00	$                        1,500.00	150	$               10.00	$                 1,500.00	0	$                 10.00	$                         -
Purchases:
09-Jun	200	$                12.00	$                        2,400.00	200	$               12.00	$                 2,400.00	0	$                 12.00	$                         -
22-Jun	250	$                18.00	$                        4,500.00	175	$               18.00	$                 3,150.00	75	$                 18.00	$            1,350.00
TOTAL	600		$                        8,400.00	525		$                 7,050.00	75		$            1,350.00