a. Novak Inc. uses a perpetual inventory system. Its records show the following for the month of May.Date Explanation Units UnitCost TotalCost May 1 Inventory 27 $ 7 $ 189 May 15 Purchase 26 8 208 May 18 Sale ( 46) May 24 Purchase 40 9 360 Total 47 $ 757 Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO formula.Cost of goods sold $ Ending Inventory $ b. Ayayai Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 79 units were sold.Date Explanation Units Unit Cost Total Cost May 1 Inventory 31 $ 10 $ 310 May 15 Purchase 26 11 286 May 24 Purchase 42 12 504 Total 99 $ 1,100 Calculate the Cost of goods sold and the ending inventory at May 31 using the FIFO formula.Cost of goods sold $ Ending inventory $

Here in this question we are required to calculation COGS and ending inventory under FIFO basis.…

Answered: a. Novak Inc. uses a perpetual…

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. Novak Inc. uses a perpetual inventory system. Its records show the following for the month of May.

Date	Explanation	Units	Unit Cost		Total Cost
May	1	Inventory	27			$ 7	$ 189
May	15	Purchase	26			8	208
May	18	Sale	( 46	)
May	24	Purchase	40			9	360
		Total	47				$ 757

Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO formula.

Cost of goods sold		$
Ending Inventory		$

b. Ayayai Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 79 units were sold.

Date	Explanation	Units	Unit Cost		Total Cost
May 1	Inventory	31		$ 10		$ 310
May 15	Purchase	26		11		286
May 24	Purchase	42		12		504
	Total	99				$ 1,100

Calculate the Cost of goods sold and the ending inventory at May 31 using the FIFO formula.

Cost of goods sold		$
Ending inventory		$

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