Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using FIFO. DateActivitiesUnits Acquired at CostUnits Sold at RetailMay 1Beginning inventory150 units @ $10 = $1,500 May 5Purchase220 units @ $12 = $2,640 May 10Sales 140 units @ $20May 15Purchase100 units @ $13 = $1,300 May 24Sales 90 units @ $21

Name: Salmone Company reported the following purchases and sales of its only
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Description: Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using FIFO. DateActivitiesUnits Acquired at CostUnits Sold at RetailMay 1Begin

Introduction: - FIFO means First-in-first-out It is one of the inventory valuation method. As per this method First comes into inventory first goes out.Explanations:- As per FIFO policy , the items which are first purchased will be sold off first. Accordingly to the problem total 230 (140+90) units sold. Cost of goods sold for 230 units as follows:- =150 units from March 1 purchases + 80 Units from March 5 purchases =150 x $10 + 80 x $12 =$1,500 + $960 =$2,460 Conclusion:- Cost of goods sold for 230 units is $2,460 I hope helpful to you… If you are satisfied... Support me... Thank you...

Answered: Salmone Company reported the following…

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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Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning inventory	150 units @ $10 = $1,500
May 5	Purchase	220 units @ $12 = $2,640
May 10	Sales		140 units @ $20
May 15	Purchase	100 units @ $13 = $1,300
May 24	Sales		90 units @ $21

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