**Given the following:**| Date | Number purchased | Cost per unit | Total ||---------------|------------------|---------------|--------|| January 1 | 42 | $3 | $126 || April 1 | 62 | $6 | $372 || June 1 | 52 | $7 | $364 || November 1 | 57 | $8 | $456 || **Total** | **213** | | **$1,318** |---**a. Calculate the cost of ending inventory using the FIFO (ending inventory shows 63 units).**- **Cost of ending inventory**: [Input Box]**b. Calculate the cost of goods sold using the FIFO (ending inventory shows 63 units).**- **Cost of goods sold**: [Input Box]

Inventory valuation method includes: FIFO Method LIFO Method Weighted average cost method FIFO…

Answered: Given the following: January 1…

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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**Given the following:**

| Date | Number purchased | Cost per unit | Total |
|---------------|------------------|---------------|--------|
| January 1 | 42 | $3 | $126 |
| April 1 | 62 | $6 | $372 |
| June 1 | 52 | $7 | $364 |
| November 1 | 57 | $8 | $456 |
| **Total** | **213** | | **$1,318** |

---

**a. Calculate the cost of ending inventory using the FIFO (ending inventory shows 63 units).**

- **Cost of ending inventory**: [Input Box]

**b. Calculate the cost of goods sold using the FIFO (ending inventory shows 63 units).**

- **Cost of goods sold**: [Input Box]

Expert Solution

Step 1

Inventory valuation method includes:

FIFO Method
LIFO Method
Weighted average cost method

FIFO Method- As per this method, the inventory which is purchased first are sold first

LIFO Method- As per this method, the inventory which is purchased later are sold first

Weighted average cost method- As per this method, weighted average cost are required to be computed so as to determine the value of cost of goods sold and ending inventory

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