DateActivitiesUnits Acquired at CostUnits Sold at RetailJanuary 1Beginning inventory580units@ $40 per unit February 10Purchase420units@ $38 per unit March 13Purchase180units@ $25 per unit March 15Sales 755units@ $70 per unitAugust 21Purchase190units@ $45 per unit September 5Purchase560units@ $41 per unit September 10Sales 750units@ $70 per unit Totals1,930units 1,505units Required:Compute cost of goods available for sale and the number of units available for salewhat is the ending inventory? DateJanuary 1February 10Total February 10March 13Total March 13March 15Total March 15August 21Total August 21September 5Total September 5September 10Total September 10TotalsGoods Purchased# of unitsCost per # of unitsunitsoldPerpetual FIFO:Cost of Goods SoldCost per Cost of Goods Soldunit# of unitsInventory BalanceCost perunit$ 40.00580 at=InventoryBalance$ 23,200.00 DateJanuary 1February 10Total February 10March 13Total March 13March 15Total March 15August 21Total August 21September 5Total September 5September 10Total September 10TotalsGoods Purchased# of unitsCost perunit# of unitssoldPerpetual LIFO:Cost of Goods SoldCost perunitCost of Goods Sold# of units580Inventory BalanceCost perunitat$ 40.00 =InventoryBalance$ 23,200.00

FIFO is the method used for calculating cost of goods sold and cost of closing inventory. In FIFO,…

Answered: Required: Compute cost of goods…

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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Date	Activities	Units Acquired at Cost	Units Sold at Retail
January 1	Beginning inventory	580	units	@ $40 per unit
February 10	Purchase	420	units	@ $38 per unit
March 13	Purchase	180	units	@ $25 per unit
March 15	Sales				755	units	@ $70 per unit
August 21	Purchase	190	units	@ $45 per unit
September 5	Purchase	560	units	@ $41 per unit
September 10	Sales				750	units	@ $70 per unit
	Totals	1,930	units		1,505	units

Required:

Compute cost of goods available for sale and the number of units available for sale
what is the ending inventory?

Date
January 1
February 10
Total February 10
March 13
Total March 13
March 15
Total March 15
August 21
Total August 21
September 5
Total September 5
September 10
Total September 10
Totals
Goods Purchased
# of units
Cost per # of units
unit
sold
Perpetual FIFO:
Cost of Goods Sold
Cost per Cost of Goods Sold
unit
# of units
Inventory Balance
Cost per
unit
$ 40.00
580 at
=
Inventory
Balance
$ 23,200.00

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