Question

Using the FIFO method, find the cost of ending inventory, cost of goods available for sale, and cost of goods sold given the following data:
January 1 inventory: 498 erasers purchased at $0.56 per unit cost with the ending inventory of 190.

April 1 inventory: 670 erasers purchased at $0.39 per unit cost with the ending inventory of 212.

July 1 inventory: 467 erasers purchased at $0.59 per unit cost with the ending inventory of 56.

October 1 inventory: 264 erasers purchased at $0.76 per unit cost with the ending inventory of 113.


$85.88

$1,016.35

$930.47

$816.74

Answer 1

Answer:

(a) $85.88

Step-by-step explanation:

FIFO method states that the inventory which is bought first  will be sold first.. Its an acronym for first in first out.

The ending inventory of previous method is sold first in the next month.

Hence, to calculate the cost of the ending inventory, we will consider the ending inventory for the month of October.

Ending inventory in October  = 113

Per unit cost = $0.76

Cost of the ending inventory =  113 × 0.76

                                                = $85.88