7. FIFO Method: Perpetual Inventory System
Assume the following data with regard to inventory for Vegan Company:
Aug. 1 Inventory 40 units @ $10 per unit $ 400 8 Purchase 50 units @ $11 per unit 550 22 Purchase 35 units @ $12 per unit 420 Goods available for sale 125 units $1,370 Aug. 15 Sale 45 units 28 Sale 25 units Inventory, Aug. 31 55 units
Calculate the cost of ending inventory and cost of goods sold according to the FIFO method under the perpetual inventory system.
FIFO Method Cost of ending inventory: $ Cost of goods sold: $
7. FIFO Method: Perpetual Inventory System
Assume the following data with regard to inventory for Vegan Company:
| Aug. 1 | Inventory | 40 | units @ $10 per unit | $ 400 | ||
| 8 | Purchase | 50 | units @ $11 per unit | 550 | ||
| 22 | Purchase | 35 | units @ $12 per unit | 420 | ||
| Goods available for sale | 125 | units | $1,370 | |||
| Aug. 15 | Sale | 45 | units | |||
| 28 | Sale | 25 | units | |||
| Inventory, Aug. 31 | 55 | units | ||||
Calculate the cost of ending inventory and cost of goods sold according to the FIFO method under the perpetual inventory system.
| FIFO Method | |
| Cost of ending inventory: | $ |
| Cost of goods sold: | $ |
Related questions
Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for prepaid cellphones for August are as follows:
| Inventory | Purchases | Sales | |||
|---|---|---|---|---|---|
| August 1 | 2,200 units at $20 | August 10 | 1,100 units at $22 | August 12 | 1,540 units |
| August 20 | 990 units at $24 | August 14 | 1,320 units | ||
| August 31 | 660 units |
Assuming that the perpetual inventory system is used, costing bythe FIFO method, determine the cost of the merchandise sold foreach sale and the inventory balance after each sale.
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| Periodic Inventory Method | |||||||||
| Better Bottles, Inc. uses a PERIODIC inventory system and has the following information available: | |||||||||
| Description | # of Units | Cost per Unit | Total Cost | ||||||
| Beginning inventory | 20 | $20.00 | $400 | ||||||
| Jan 5 sold | 15 | ||||||||
| Jan 15 purchase | 27 | $22.00 | 594 | ||||||
| Jan 18 sold | 21 | ||||||||
| Jan 20 purchase | 33 | $30.00 | 990 | ||||||
| Total goods available for sale | 80 | $1,984 | |||||||
| Total goods sold | 36 | ||||||||
| Required: | |||||||||
| 1 | Calculate both Cost of goods sold and Ending inventory using the Periodic FIFO Method. | ||||||||
| 2 | Calculate both Cost of good sold and Ending Inventory using Periodic LIFO Method. | ||||||||
| 3 | Use your calculations from 1-2 and complete the Income Statement. | ||||||||
| The company income tax rate: | 0.25 | ||||||||
| 1 | FIFO Cost of Goods Sold - PERIODIC | ||||||||
| Units Sold Taken From: | # of Units | Cost per Unit | Total Cost | ||||||
| Total Cost of Goods Sold FIFO | |||||||||
| FIFO Ending Inventory - PERIODIC | |||||||||
| Inventory Available | # of Units | Cost per Unit | Total Cost | ||||||
| Beginning inventory | |||||||||
| +Purchase | |||||||||
| +Purchase | |||||||||
| (Less Cost of Goods Sold) | |||||||||
| Ending Inventory FIFO | |||||||||
| 2 | LIFO Cost of Goods Sold - PERIODIC | ||||||||
| Units Sold Taken From: | # of Units | Cost per Unit | Total Cost | ||||||
| Total Cost of Goods Sold LIFO | |||||||||
| LIFO Ending Inventory - PERIODIC | |||||||||
| Inventory Available | # of Units | Cost per Unit | Total Cost | ||||||
| Beginning inventory | |||||||||
| +Purchase | |||||||||
| +Purchase | |||||||||
| (Less Cost of Goods Sold) | |||||||||
| Ending Inventory LIFO | |||||||||
| 3 | Income Statement - Periodic Inventory Method | ||||||||
| FIFO | LIFO | ||||||||
| Sales revenue, net | 25,000 | 25,000 | |||||||
| Cost of goods sold | |||||||||
| Gross profit | |||||||||
| Operating expenses | 8,000 | 8,000 | |||||||
| Operating income before tax | |||||||||
| Income tax expense | |||||||||
| Net income | |||||||||
