Answer:
Ending inventory is $20,390
Cost of goods sold = $14,190
Explanation:
Given:
Unit sold in April = 450
Beginning inventory = 260 units × $29 = $7,540
Purchased on April 15 = 360 units × $35 = $12,600
Now goods sold is 450 units. Since company follows FIFO, it will sell 260 units @ $29 first and then 450 - 260 = 190 units from goods purchased on April 15.
Cost of goods sold = 7,540 + (190×35)
= $14,190
Closing inventory:
April 15 purchase = 35×(360 - 190)
= $5,950
April 23 purchase = 380×$38 = $14,440
Total closing inventory = 14,440 + 5,950 = $20,390
Cost of goods sold can be verified in the following manner:
Total cost of goods available for sale = $34,580
Ending inventory = $20,390
Cost of goods sold = 34,580 - 20390
= $141,90
