Question

Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning Inventory 24 units $17 5 Sale 14 units 17 Purchase 25 units $18 30 Sale 27 units Assuming a perpetual Inventory system and the first-in, first-out method, determine (a) the cost of the goods sold for the September 30 sale and (b) the inventory on September 30. a. Cost of goods sold $ 170 b. Inventory, September 30

Answer 1

	Purchase			Sale	Cost of goods sold			Inventory
Date	Units	Cost per unit	Total cost	Units	Units	Cost per unit	Total cost	Units	Cost per unit	Total cost
Sep-01								24	17	408
Sep-05				14	14	17	238	10	17	170
Sep-17	25	18	450					10	17	170
								25	18	450
Sep-30				27	10	17	170	8	18	144
					17	18	306
						Cost of Goods sold	714		Closing Inventory	144
a. Cost of goods sold	714
b. Inventory, Sep 30	144