Question

Ch 6 Assignment (Not Graded) Calculator Perpetual Inventory Using FIFO 1 BE.06.02 ALGO Beginning inventory, purchases, and sales for Item Zeta are as follows: 2. EX.06.164 3. EX.06.164 ALGO 4. EX.06.159 Oct. 1 Inventory 45 units $21 7 Sale 32 units 15 Purchase 36 units 524 24 Sale 22 units Assuming a perpetual inventory system and using the first in first-out (FIFO) method, determine (a) the cost of goods sold on October 24 and (b) the inventory on October 31 a. Cost of goods sold on October 24 5. EX.06.161 ALGO 6. BE 06.03. ALGO b. Inventory on October 31 7. EX.06.162 8. EX.06.157 9. EX.06.155 10. EX.06.161

Answer 1

1.

Cost of goods sold	$1,161
Ending inventory	$648

Calculations:

FIFO	Cost of goods sold
	Units	Cost/Unit	Total
Oct.1 Inventory	32	$21	$672
Oct.1 Inventory	13	$21	$273
Oct.15 Purchase	9	$24	$216
Total	54		$1,161
FIFO	Ending inventory
	Units	Cost/Unit	Total
Oct.15 Purchase	27	$24	$648
Total	27		$648

2.

Cost of goods sold	$290
Ending inventory	$100

Calculations

LIFO	Cost of goods sold
	Units	Cost/Unit	Total
Sept.1 Inventory	17	$10	$170
Sept.17 Purchase	8	$15	$120
Total	25		$290
LIFO	Ending inventory
	Units	Cost/Unit	Total
Sept.1 Inventory	7	$10	$70
Sept.17 Purchase	2	$15	$30
Total	9		$100

3.

Cost of goods sold	$434
Ending inventory	$268

Calculations:

LIFO	Cost of goods sold
	Units	Cost/Unit	Total
Sept.1 Inventory	15	$14	$210
Sept.17 Purchase	14	$16	$224
Total	29		$434
LIFO	Ending inventory
	Units	Cost/Unit	Total
Sept.1 Inventory	10	$14	$140
Sept.17 Purchase	8	$16	$128
Total	18		$268

4.

	October 31
Sales	$28
Cost of goods sold	($5)
Gross profit	$23
Ending Inventory ($13+$15)	$28

5.

Cost of goods sold	$978
Ending inventory	$240

Calculations:

FIFO	Cost of goods sold
	Units	Cost/Unit	Total
Sept.1 Inventory	18	$18	$324
Sept.1 Inventory	13	$18	$234
Sept.17 Purchase	21	$20	$420
Total	52		$978
FIFO	Ending inventory
	Units	Cost/Unit	Total
Sept.17 Purchase	12	$20	$240
Total	12		$240