Question

Buffalo Company uses a periodic inventory system. For April, when the company sold 500 units, the following information is available. Unit Cost $32 April 1 inventory April 15 purchase April 23 purchase Units 290 430 280 1,000 Total Cost $ 9,280 16,340 11,760 42 $37,380 Compute the April 30 inventory and the April cost of goods sold using the FIFO method. Ending inventory Cost of goods sold

Answer 1

Answer- Ending Inventory =$20120

Cost of goods sold =$17260

Explanation-

FIFO Method
	Goods purchased		Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Apr-01						290	32	9280
Apr-15	430	38				290	32	9280
						430	38	16340
Apr-23	280	42				290	32	9280
						430	38	16340
						280	42	11760
Apr-30			290	32	9280	220	38	8360
			210	38	7980	280	42	11760
Totals			500		17260	500		20120