During the year, Wright Company sells 475 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost January 1 Beginning inventory 40 $71 $2,840 May 5 Purchase 255 74 18,870 November 3 Purchase 205 79 16,195 500 $37,905 Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.
During the year, Wright Company sells 475 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost January 1 Beginning inventory 40 $71 $2,840 May 5 Purchase 255 74 18,870 November 3 Purchase 205 79 16,195 500 $37,905 Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the year, Wright Company sells 475 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year.
| Date | Transaction | Number of Units | Unit Cost | Total Cost |
|---|---|---|---|---|
| January 1 | Beginning inventory | 40 | $71 | $2,840 |
| May 5 | Purchase | 255 | 74 | 18,870 |
| November 3 | Purchase | 205 | 79 | 16,195 |
| 500 | $37,905 |
Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.
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