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2 years ago

FIFO Perpetual Inventory

Business

1 answer:

RideAnS [48]2 years ago

5 0

1. The total sales and cost of goods sold for the period are <u>$381,370</u> and <u>$147,510</u>, respectively.

2. The gross profit from sales for the period is <u>$233,860</u>.

3. The ending inventory cost as of June 30 is <u>$43,560</u>.

<h3>How are the amounts determined using the FIFO method?</h3>

The total sales can be computed by summing the sales units and dollars.

The cost of goods sold is the difference between the cost of goods available for sale and the ending inventory.

The gross profit is the difference between the sales revenue and the cost of goods sold.

The ending inventory is determined as the product of units in the ending inventory multiplied by the purchase cost per unit.

<h3>Data and Calculations:</h3>

Date Transaction Number of Units Per Unit Total

Apr. 3 Inventory 66 $225 $14,850

8 Purchase 132 270 35,640

11 Sale 88 750 66,000

30 Sale 55 750 41,250

May 8 Purchase 110 300 33,000

10 Sale 66 750 49,500

19 Sale 33 750 24,750

28 Purchase 110 330 36,300

June 5 Sale 66 790 52,140

16 Sale 88 790 69,520

21 Purchase 198 360 71,280

28 Sale 99 790 78,210

1. Determination of the total sales and the total cost of goods sold for the period.

<h3>Total Sales:</h3>

Apr. 11 Sale 88 750 66,000

30 Sale 55 750 41,250

May 10 Sale 66 750 49,500

19 Sale 33 750 24,750

June 5 Sale 66 790 52,140

16 Sale 88 790 69,520

28 Sale 99 790 78,210

Total sales 495 $381,370

<h3>Cost of sales:</h3>

Cost of Goods Sold = Cost of goods available for sale minus ending inventory

= $147,510 ($191,070 - $43,560)

2. Determination of the gross profit from sales for the period.

Gross profit = $233,860 ($381,370 - $147,510)

3. Determination of the ending inventory cost as of June 30.

Ending inventory = $43,560 (121 x $360)

Apr. 3 Inventory 66 $225 $14,850

8 Purchase 132 270 35,640

May 8 Purchase 110 300 33,000

28 Purchase 110 330 36,300

21 Purchase 198 360 71,280

Goods available for sale 616 $191,070

Ending inventory 121 (616 - 495)

Learn more about the FIFO method at brainly.com/question/27952133

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