**Educational Website Transcription:**---**Inventory Valuation using Perpetual FIFO Method***Objective:*Understand how to determine costs assigned to ending inventory under the perpetual inventory system using the FIFO (First-In, First-Out) method.---**Perpetual FIFO Calculation:**| Date | Goods Purchased | Cost of Goods Sold | Inventory Balance ||------------|-------------------|-----------------------------|------------------------------------|| | # of units | Cost per unit | # of units | Cost per unit | Cost of Goods Sold | # of units | Cost per unit | Inventory Balance || January 1 | | | | | | 320 | $4.50 | $1,440.00 || January 9 | 80 | $4.70 | | | | 80 | $4.70 | $360.00 || **Total January 9** | | | | | | | | $736.00 || January 25 | 100 | $4.84 | | | | 100 | $4.50 | $450.00 || | | | | | | 100 | $4.70 | $470.00 || | | | | | | 100 | $4.84 | $484.00 || **Total January 25** | | | | | | | | $1,404.00 || January 26 | | | 180 | $4.50 | $810.00 | 180 | $4.50 | $810.00 || | | | 180 | $4.70 | $846.00 | 180 | $4.70 | $846.00 || | | | 180 | $4.84 | $871.20 | 180 | $4.84 | $871.20 || **Total January 26** | | | | | **$2,527.20** | | | **$ A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units.| Units | Unit Cost ||-------|-----------|| Beginning inventory on January 1 | 320 | $4.50 || Purchase on January 9 | 80 | $4.70 || Purchase on January 25 | 100 | $4.84 |This table outlines the inventory activity for January, detailing the number of units and unit costs for each transaction. Starting with 320 units at $4.50 per unit on January 1, the company purchases an additional 80 units at $4.70 on January 9 and 100 units at $4.84 on January 25. After selling 350 units, the ending inventory totals 150 units as of January 31.

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Description: **Educational Website Transcription:**---**Inventory Valuation using Perpetual FIFO Method***Objective:*Understand how to determine costs assigned to ending inventory under the perpetual inventory system using the FIFO (First-In, First-Out) method.-

FIFO stands for First In, First Out. Under the FIFO method, goods purchased first are sold first.…

Business

Accounting

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 320 80 100 Unit Cost $ 4.50 4.70 4.84

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 320 80 100 Unit Cost $ 4.50 4.70 4.84

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
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 9,000 $ 60.00 $ 540,000 10 Purchase 21,000 70.00 1,470,000 28 Sale 10,250 140.00 1,435,000 30 Sale 5,750 140.00 805,000 Feb. 5 Sale 3,500 140.00 490,000 10 Purchase 39,500 75.00 2,962,500 16 Sale 15,000 150.00 2,250,000 28 Sale 10,000 150.00 1,500,000 Mar. 5 Purchase 25,000 82.00 2,050,000 14 Sale 30,000 150.00 4,500,000 25 Purchase 10,000 88.40 884,000 30 Sale 19,000 150.00 2,850,000 The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown in Problem 6-1A. Instructions Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Determine the inventory on…
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