Question

Compute the cost of cost of goods? sold, cost of ending merchandise? inventory, and gross profit using the FIFO inventory costing method. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological? order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual? record, calculate the quantity and total cost of merchandise inventory? purchased, sold, and on hand at the end of the period.? (Enter the oldest inventory layers? first.)

Answer 1

Incomplete question;

Here's the options that complete the question;

Dec. 1 Beginning merchandise inventory

11 units $ 8 each

Dec. 8 Sale

6 units at 21 each

Dec. 14 Purchase

17 units at $15 each

Dec. 21 Sale

15 units at $21 each

Explanation:

Cost of goods sold

Dec. 8 Sale (6 units)

6 units from Dec. 1 Beginning Inventory

= 6 x $8 = $48

Dec. 21 Sale (15 units)

2 units from Dec. 1 Beginning Inventory leftover

= 2 x $8 = $16

13 units from Dec. 14 Purchase

13 x $15 = $195

Inventory on hand

4 units leftover from Dec. 14 Purchase

Cost of goods Purchased

Dec. 1

         11*8=$88

Dec. 14

          17*15=$255

Total= $343