Required information [The following information applies to the questions displayed below.] A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 440 units. Ending inventory at January 31 totals 170 units. Beginning inventory on January 1 Units 400 Unit Cost $ 3.90 Purchase on January 9 90 Purchase on January 25 120 4.10 4.20 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based the FIFO method. Perpetual FIFO:
Required information [The following information applies to the questions displayed below.] A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 440 units. Ending inventory at January 31 totals 170 units. Beginning inventory on January 1 Units 400 Unit Cost $ 3.90 Purchase on January 9 90 Purchase on January 25 120 4.10 4.20 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based the FIFO method. Perpetual FIFO:
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
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Question
![Required information
[The following information applies to the questions displayed below.]
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the
company sells 440 units. Ending inventory at January 31 totals 170 units.
Beginning inventory on January 1
Units
400
Unit Cost
$ 3.90
Purchase on January 9
90
Purchase on January 25
120
4.10
4.20
Required:
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on
the FIFO method.
Perpetual FIFO:
Goods purchased
Cost of Goods Sold
Inventory Balance
Date
# of units
Cost per
unit
# of
units
sold
Cost per Cost of Goods
unit
Sold
# of units
Cost per
unit
Inventory
Balance
January 1
January 9
Total January 9
January 25
Total January 25
January 26
Total January 26](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd1a599e3-0b4c-4336-8067-410b11968aa2%2Fcb4eb200-ccd9-42ee-985b-17ab9f65e092%2Fg30kuj_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the
company sells 440 units. Ending inventory at January 31 totals 170 units.
Beginning inventory on January 1
Units
400
Unit Cost
$ 3.90
Purchase on January 9
90
Purchase on January 25
120
4.10
4.20
Required:
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on
the FIFO method.
Perpetual FIFO:
Goods purchased
Cost of Goods Sold
Inventory Balance
Date
# of units
Cost per
unit
# of
units
sold
Cost per Cost of Goods
unit
Sold
# of units
Cost per
unit
Inventory
Balance
January 1
January 9
Total January 9
January 25
Total January 25
January 26
Total January 26
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