**Inventory Management Problem**Below is the information on the beginning inventory, purchases, and sales for an inventory item:1. **September 1** - Beginning Inventory: 32 units at $23 each2. **September 5** - Sale: 19 units3. **September 17** - Purchase: 35 units at $26 each4. **September 30** - Sale: 35 units**Assumptions:**The perpetual inventory system is in place, utilizing the first-in, first-out (FIFO) method.**Questions:**a. **Determine the cost of the goods sold for the September 30 sale.**b. **Determine the inventory on September 30.****Solution Steps:**1. **Cost of Goods Sold for September 30 Sale:** - Start by selling the oldest inventory (FIFO). - Remaining units after the September 5 sale: 32 - 19 = 13 units at $23 each. - Additional units needed for the September 30 sale: 35 - 13 = 22 units from the September 17 purchase at $26 each.2. **Calculate Costs:** - Cost of 13 units at $23 = 13 x $23 = $299 - Cost of 22 units at $26 = 22 x $26 = $572 - Total Cost of Goods Sold for September 30 = $299 + $572 = $8713. **Ending Inventory on September 30:** - After sales, there are (35 - 22) = 13 units remaining from the September 17 purchase. - Inventory value: 13 x $26 = $338**Answers:**a. **Cost of Goods Sold for September 30 Sale:** - $871b. **Inventory on September 30:** - $338

Name: **Inventory Management Problem**Below is the information on the begin
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Description: **Inventory Management Problem**Below is the information on the beginning inventory, purchases, and sales for an inventory item:1. **September 1** - Beginning Inventory: 32 units at $23 each2. **September 5** - Sale: 19 units3. **September 17**

First In, First Out, commonly known as FIFO, is an asset-management and valuation method in which…

Business

Accounting

Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning Inventory 5 Sale 17 Purchase 30 Sale 32 units @ $23 19 units 35 units @ $26 35 units Assuming a perpetual inventory system and the first-in, first-out method: a. Determine the cost of the goods sold for the September 30 sale. $ b. Determine the inventory on September 30. $

Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning Inventory 5 Sale 17 Purchase 30 Sale 32 units @ $23 19 units 35 units @ $26 35 units Assuming a perpetual inventory system and the first-in, first-out method: a. Determine the cost of the goods sold for the September 30 sale. $ b. Determine the inventory on September 30. $

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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