A corporation uses a FIFO perpetual inventory system. During August, it had the following transactions: August...

A corporation uses a FIFO perpetual inventory system. During August, it had the following transactions: August 1, Beginning inventory of 8 units @ $11 per unit August 2, 25 units were purchased at $12 per unit. August 15, 12 units were sold at $25 per unit. August 18, 15 units were purchased at $14 per unit. August 20. 18 units were sold at $25 per unit August 28. 14 units were sold at $26 per unit What was the amount of the ending inventory, and the cost of sales for the month of August?

Expert Solution

FIFO METHOD INVENTORY SCHEDULE

No	Qty Purchased	Unit Cost	Total Cost	Qty Sold	Unit cost	Total cost	Inv.Qty	Unit Cost	Total cost
Aug 1							8	11	88

Aug 2	25	12	300				8	11	88
							25	12	300

Aug 15				12	25	300	21	12	252

Aug 18	15	14	210				21	12	252
							15	14	210


Aug 20				18	25	450	3	12	36
							15	14	210

Aug 28				14	26	364	4	14	56


TOTAL
						1114

Cost of sales = 1114

Ending Inventory = 56

ekkarill92 answered 2 years ago

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