Answer:
Ending Inventory = $555
Cost of Goods Sold = $2,430
Explanation:
Date Units Unit Cost Closing Inventory
Opening Balance September 1 100 $3.00 $300.00
Purchases
September 8 450 $3.50 $1,575.00
September 18 300 $3.70 $1,110.00
Ending Inventory September 30 150 $3.70 $555.00
According to FIFO the the material first purchased will be sold first. So, the closing Inventory of 150 units will be valued at the rate of last purchase of 300 units @ $3.77/unit.
Cost of Goods Sold = $300 + $1575 + (( 300 - 150 ) x 3.70) = $2,430