Question

Crane Company uses a periodic inventory system. For October, when the company sold 1,690 units, the following information is available.

		Units		Unit Cost		Total Cost
October 1 inventory		580		$22		$12,760
October 8 purchase		1,160		23		26,680
October 25 purchase		580		26		15,080
		2,320				$54,520

Compute the October 31 inventory and the October cost of goods sold using the FIFO method.

Ending inventory		$enter the ending inventory in dollars
Cost of goods sold		$enter the cost of goods sold in dollars

Answer 1

Solution

	FIFO
Ending Inventory	$        16,230
Cost of Goods Sold	$        38,290

Working

	Units	Cost per unit	value
Beginning Balance	580	$                   22.00	$ 12,760
Purchases
	1160	$                   23.00	$ 26,680
	580	$                   26.00	$ 15,080
Cost of goods available for sale	2320		$ 54,520

.

FIFO
Total Units Available for sale		2320
Units Sold		1690
Closing Stock in Units		630
Valuation
Ending Inventory	580	@	$             26.00	$ 15,080
	50	@	$             23.00	$ 1,150
Value Of Ending Inventory				$ 16,230
Cost of Goods sold	54520 minus 16230			$      38,290.00