Using FIFO (a) Compute the cost of ending inventory. (b) Compute the cost of goods sold for the year.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Torres Company had the following information for the year ending December 31:
Units
Unit Cost
Beginning inventory
350
$45
Purchase:
April 6
260
44
Sale:
May 4
450
Purchase:
July 19
590
43
Sale:
September 9
370
Purchase:
October 10
100
31
Torres uses the perpetual inventory system and the FIFO method.
Required:
Using FIFO
(a) Compute the cost of ending inventory.
(b) Compute the cost of goods sold for the year.
Cost of ending inventory
Cost of goods sold
$0
?
Transcribed Image Text:Torres Company had the following information for the year ending December 31: Units Unit Cost Beginning inventory 350 $45 Purchase: April 6 260 44 Sale: May 4 450 Purchase: July 19 590 43 Sale: September 9 370 Purchase: October 10 100 31 Torres uses the perpetual inventory system and the FIFO method. Required: Using FIFO (a) Compute the cost of ending inventory. (b) Compute the cost of goods sold for the year. Cost of ending inventory Cost of goods sold $0 ?
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