### Inventory Calculation Using FIFO MethodGiven the following data:| | Number purchased | Cost per unit | Total ||---------------|-------------------|---------------|--------|| **January 1 inventory** | 34 | $4 | $136 || **April 1** | 54 | $7 | $378 || **June 1** | 44 | $8 | $352 || **November 1** | 49 | $9 | $441 || **Total** | 181 | - | $1,307 |a. Calculate the cost of ending inventory using the FIFO (First-In, First-Out) method (ending inventory shows 55 units).**Cost of ending inventory:**[Blank Space for Input]b. Calculate the cost of goods sold using the FIFO (First-In, First-Out) method (ending inventory shows 55 units).**Cost of goods sold:**[Blank Space for Input]---### Explanation:This table displays the inventory purchases and their costs throughout the year. The data includes the dates of inventory acquisitions, the numbers of units purchased, the cost per unit, and the total cost for each purchase period.**Steps for Calculation Using FIFO Method:**1. **Calculate Cost of Ending Inventory:** FIFO method assumes that the earliest goods purchased are the first to be sold. Therefore, to calculate the cost of the ending inventory, we will start with the latest purchases. Since the ending inventory shows 55 units, we will take units from the last available batches until we reach 55 units.2. **Calculate Cost of Goods Sold:** The Cost of Goods Sold (COGS) is calculated by summing the cost of units sold from the beginning inventory and the subsequent purchases in the order they were acquired until the total units sold are accounted for.In these blanks, students are expected to fill out their computed values based on the provided inventory data using the FIFO method.

The cost of goods sold refers to the direct costs of making products sold by a company (COGS). This…

Given the following: January 1 inventory April 1 June 1 November 1 Number purchased 34 54 44 Cost of goods sold 49 181 Cost per unit $4 7 8 9 Total $ 136 378 352 441 $1,307 a. Calculate the cost of ending inventory using the FIFO (ending inventory shows 55 units). Cost of ending inventory b. Calculate the cost of goods sold using the FIFO (ending inventory shows 55 units).

Given the following: January 1 inventory April 1 June 1 November 1 Number purchased 34 54 44 Cost of goods sold 49 181 Cost per unit $4 7 8 9 Total $ 136 378 352 441 $1,307 a. Calculate the cost of ending inventory using the FIFO (ending inventory shows 55 units). Cost of ending inventory b. Calculate the cost of goods sold using the FIFO (ending inventory shows 55 units).

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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