A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 390 units. Ending inventory at January 31 totals 150 units. UnitsUnit CostBeginning inventory on January 1350$3.40 Purchase on January 980 3.60 Purchase on January 25110 3.70 Requlred:Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFOmethod.Perpetual FIFO:Goods purchasedCost of Goods SoldInventory Balance# ofunits# ofunitssoldCost perCost perunitCost ofGoods SoldCost perunitInventoryBalanceDate# of unitsunitJanuary 1350 @ S 3.40 =1,190.00January 980 @$ 3.60@ $ 3.40 =$ 3.60 =0.00January 25January 26Totals

First-in, first-out (FIFO) is a type of inventory valuation method in which it is assumed that the…

Answered: A company reports the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 390 units. Ending inventory at January 31 totals 150 units.

Units	Unit Cost
Beginning inventory on January 1	350	$	3.40
Purchase on January 9	80		3.60
Purchase on January 25	110		3.70

Requlred:
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO
method.
Perpetual FIFO:
Goods purchased
Cost of Goods Sold
Inventory Balance
# of
units
# of
units
sold
Cost per
Cost per
unit
Cost of
Goods Sold
Cost per
unit
Inventory
Balance
Date
# of units
unit
January 1
350 @ S 3.40 =
1,190.00
January 9
80 @
$ 3.60
@ $ 3.40 =
$ 3.60 =
0.00
January 25
January 26
Totals

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