Question 1: How did you get an ending inventory of 700 units. Question 2: and how did you get 200 and 500 units labeled in "from jan 18 purchase" and "Jan 31 purchase"
Question 1: How did you get an ending inventory of 700 units. Question 2: and how did you get 200 and 500 units labeled in "from jan 18 purchase" and "Jan 31 purchase"
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 1: How did you get an ending inventory of 700 units.
Question 2: and how did you get 200 and 500 units labeled in "from jan 18 purchase" and "Jan 31 purchase"

Transcribed Image Text:Illustration
- FIFO
The following data pertain to an inventory item:
Unit
Sales
cost Total cost (in units)
200
Units
Jan. 1 Beginning balance 800
8 Sale
700
500
18 Purchase
22 Sale
31 Purchase
The ending inventory is 700 units.
FIFO - Periodic
From Jan. 18 Purchase
From Jan. 31 Purchase
Units
200
500
700
Cost of goods sold
Inventory-January 1
Purchases (147,000+ 110,000)
Goods available for sale
Inventory-January 31
Cost of goods sold
210
220
160,000
147,000
110,000
Unit cost
210
220
500
800
Total cost
42,000
110,000
152,000
160,000
257,000
417,000
(152,000)
265,000
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