Question

Question 10 (10 points) July 1 Beginning Inventory.. 20 units $20 7 8 S July 7.Purchases 70 units@$21-$1.470 10 July 22....Purchases 10 units @ $22-$220 Total cost of goods available $2.090 A physical count of merchandise inventory on July 30 reveals that there are 35 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is $1,390. $1,380. $1425 $1,345 6 ar 10 ouestions sved Submit Quiz e ho

Answer 1

Ans.	Option    4th   $1,345
	Available for sale
	Date	Units	Rate	Total
	1-Jul	20	$20.00	$400
	7-Jul	70	$21.00	$1,470
	22-Jul	10	$22.00	$220
	Cost of goods available for sale	100		$2,090
	Ending inventory units    = 35 units
	Units sold = Units available for sale - Ending inventory units
	100 - 35     =   65 units
	*In FIFO method the units that have purchased first, are released the first one and the ending inventory
	units remain from the last purchases.
	Periodic FIFO:
	Date	Units	Rate	Total
	1-Jul	20	$20.00	$400
	7-Jul	45	$21.00	$945
	Cost of goods sold	65		$1,345