Brief Exercise 6-5 Calculate ending inventory and cost of goods sold using FIFO (LO6-3) During the year, Wright Company sells 500 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Date Jan. 1 Beginning inventory May. 5 Purchase Nov. 3 Purchase Transaction Number of Unit Units Cost $66 69 74 60 280 230 570 Total Cost $3,960 19,320 17,020 $40,300
Brief Exercise 6-5 Calculate ending inventory and cost of goods sold using FIFO (LO6-3) During the year, Wright Company sells 500 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Date Jan. 1 Beginning inventory May. 5 Purchase Nov. 3 Purchase Transaction Number of Unit Units Cost $66 69 74 60 280 230 570 Total Cost $3,960 19,320 17,020 $40,300
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Brief Exercise 6-5 Calculate ending inventory and cost of goods sold using FIFO (LO6-3)
During the year, Wright Company sells 500 remote-control airplanes for $110 each. The company has the following inventory purchase
transactions for the year.
Date
Transaction
Jan. 1 Beginning inventory
May. 5 Purchase
Nov. 3 Purchase
FIFO
Beginning Inventory
Purchases:
May 5
Nov. 3
Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.
Cost of Goods Sold
Cost per unit
Total
Number of Unit
Units
Cost
60
280
230
570
Cost of Goods
#of units Cost per unit
60 $
66
280 $
230
$
570
vailable for Sale
69
74
$66
69
74
$
$
Total
Cost
$ 3,960
19,320
17,020
$40,300
Cost of Goods
Available for Sale
3,960
19,320
17,020
40,300
# of units
60 $
280 $
$
340
66
69
74
Cost of Goods
Sold
$
$
3,960
19,320
0
23,280
#of units
0
0
0
Ending Inventory
Cost per unit
Ending
Inventory
$
0
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