Broadway Stores reports the following transactions related to inventory. Broadway sells all products at $7 each. Transaction Units Purchased Unit Cost Units Sold Total Cost Beginning inventory - 1/1 1,000 $2.00 $2,000 Purchase - 3/30 6,000 3.00 18,000 Purchase - 4/16 4,000 4.00 16,000 Sale - 5/11 2,000 Purchase - 6/13 2,000 4.50 9,000 Sale - 7/1 3,500 Purchase - 10/5 3,000 5.00 15,000 What is Broadway's cost of goods sold and ending inventory for the current year using the FIFO method under a perpetual system? (When entering the layers for the units sold, enter the first layer sold under FIFO on the first available line, then the next layer sold under FIFO on the next line, and so on. CGS = Cost of Goods Sold. FIFO: Cost of Goods Cost of Units Unit Total Units Sold Per Goods Inventory Transaction Purchased Cost Cost Sold Unit Sold Balance Beginning inventory Purchase - 3/30 Purchase - 4/16 Sale - 5/11 Purchase - 6/13 Sale - 7/1 Purchase - 10/5 Part 2 Under the FIFO method, Broadway's total cost of ending inventory is and the cost of goods sold for the year is

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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Broadway Stores reports the following transactions related to inventory. Broadway sells all products at $7 each.

Transaction	Units Purchased	Unit Cost	Units Sold	Total Cost
Beginning inventory - 1/1	1,000	$2.00		$2,000
Purchase - 3/30	6,000	3.00		18,000
Purchase - 4/16	4,000	4.00		16,000
Sale - 5/11			2,000
Purchase - 6/13	2,000	4.50		9,000
Sale - 7/1			3,500
Purchase - 10/5	3,000	5.00		15,000

What is Broadway's cost of goods sold and ending inventory for the current year using the FIFO method under a perpetual system? (When entering the layers for the units sold, enter the first layer sold under FIFO on the first available line, then the next layer sold under FIFO on the next line, and so on. CGS = Cost of Goods Sold.

FIFO:					Cost of
					Goods	Cost of
	Units	Unit	Total	Units	Sold Per	Goods	Inventory
Transaction	Purchased	Cost	Cost	Sold	Unit	Sold	Balance
Beginning inventory
Purchase - 3/30
Purchase - 4/16
Sale - 5/11

Purchase - 6/13
Sale - 7/1
Purchase - 10/5

Part 2

Under the FIFO method, Broadway's total cost of ending inventory is		and the cost of goods sold
for the year is		.

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