Question

cost of merchandise sold $381.00 and ending inventory $854.00

be from Cengage Learning - Google Chrome Assignment Main.do?invoker=assignments&take AssignmentSessionLocator assignment-take&inprogress=false Calculator Beginning inventory, purchases, and sales data for tennis rackets are as follows: Apr. 3 Inventory 22 units $15.00 Purchase 16 units $17.00 Sale 11 units Purchase 14 units @ $18.00 Sale 14 units Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory using FIFO. 21 Select the correct answer. cost of merchandise sold $381.00 and ending inventory $854.00 cost of merchandise sold 5854.00 and ending inventory $473.00 cost of merchandise sold $381.00 and ending inventory $473.00 cost of merchandise sold 5473.00 and ending inventory $381.00

Answer 1

Cost of merchandise sold and ending inventory using FIFO is as shown below:

FIFO-Perpetual
Date	Goods Purchased				Cost of goods sold				Ending Inventory
	Units	@	Cost per unit	Cost of purchase	Units sold	@	Cost per unit	Cost of goods sold	Units	@	Cost per unit	Ending balance
Apr-03									22		15	330
Balance									22			330
Apr-11	16		17	272					22		15	330
									16		17	272
Balance									38			602
Apr-14					11		15	165	11		15	165
									16		17	272
Balance									27			437
Apr-21	14		18	252					11		15	165
									16		17	272
									14		18	252
Balance									41			689
Apr-25					11		15	165	13		17	221
					3		17	51	14		18	252
Balance									27			473
Cost of Goods Sold					25			381
Ending Inventory									27			473

So, correct answer is C.

Cost of merchandise sold is $381 and ending inventory is $473