Question

Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:

Date	Activity	Quantity	Unit Price
5/1	Beginning Inventory	130	$10
5/5	Purchase	210	$12
5/15	Purchase	350	$14
5/25	Purchase	310	$16

Sales were 470 units at $20.  Using the FIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Answer 1

Calculation of Cost of Goods sold
Date	Activity	Quantity	Unit Price	Cost of Goods sold
05-Jan	Beginning Inventory	130	10	1,300
05-May	Purchase	210	12	2,520
May-15	Purchase	130	14	1,820
	Total	470		5,640
Final Answer:	Cost of Goods sold	5,640