Question

In: Accounting

The inventory data of Bilal Inc. is provided below, The company uses perpetual inventory system. Inventory:...

The inventory data of Bilal Inc. is provided below, The company uses perpetual inventory system.

Inventory: 1st March = 200 units @ $4.00 (purchased)

Purchases: 12th March = 500 units @ $4.50 (purchased)

15th March = 400 units @ $4.75 (purchased)

17th March = 828 units @ $5.00 (purchased)

Sales: 20th March = 1928 units sold

Instructions

Under a perpetual inventory system, determine the cost of goods sold and ending inventory for the month of March under FIFO method

Solutions

Expert Solution

FIFO
Opening Units p.u cost Total cost
Mar-01            200.00 $                4.00 $            800.00
Mar-12            500.00 $                4.50 $         2,250.00
Mar-15            400.00 $                4.75 $         1,900.00
Mar-17            828.00 $                5.00 $         4,140.00
Sale
Mar-20          (200.00) $                4.00 $          (800.00)
         (500.00) $                4.50 $       (2,250.00)
         (400.00) $                4.75 $       (1,900.00)
         (828.00) $                5.00           (4,140.00)
March closing inventory                     -   $                     -   $                     -  
COGS $       (9,090.00)

For any clarification, please comment. Kindly Up Vote!

ekkarill92 answered 2 years ago
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