ylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Date Transactions Units Cost per Unit Total Cost January 1 Beginning inventory 34 $39 1,326 April 14 Purchase 79 41 3,239 August 22 Purchase 129 43 5,547 October 29 Purchase 94 45 4,230 336 14,342 Jan. 1–Dec. 31 Sales ($59 each) 279 Sylvester uses a periodic inventory system and believes there are 57 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 47 birds in ending inventory. Sylvester is not aware of the lost canaries. Required: 1. What amount will Sylvester calculate for ending inventory and cost of goods sold using FIFO, assuming he erroneously believes 57 canaries remain in ending inventory? Ending inventory Cost of goods sold $11,7
ylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Date Transactions Units Cost per Unit Total Cost January 1 Beginning inventory 34 $39 1,326 April 14 Purchase 79 41 3,239 August 22 Purchase 129 43 5,547 October 29 Purchase 94 45 4,230 336 14,342 Jan. 1–Dec. 31 Sales ($59 each) 279 Sylvester uses a periodic inventory system and believes there are 57 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 47 birds in ending inventory. Sylvester is not aware of the lost canaries. Required: 1. What amount will Sylvester calculate for ending inventory and cost of goods sold using FIFO, assuming he erroneously believes 57 canaries remain in ending inventory? Ending inventory Cost of goods sold $11,7
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021.
| Date | Transactions | Units | Cost per Unit | Total Cost |
| January 1 | Beginning inventory | 34 | $39 | 1,326 |
| April 14 | Purchase | 79 | 41 | 3,239 |
| August 22 | Purchase | 129 | 43 | 5,547 |
| October 29 | Purchase | 94 | 45 | 4,230 |
| 336 | 14,342 | |||
| Jan. 1–Dec. 31 | Sales ($59 each) | 279 |
Sylvester uses a periodic inventory system and believes there are 57 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 47 birds in ending inventory. Sylvester is not aware of the lost canaries.
Required:
1. What amount will Sylvester calculate for ending inventory and cost of goods sold using FIFO, assuming he erroneously believes 57 canaries remain in ending inventory?
|
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