Question

During 2021, a company sells 260 units of inventory for $88 each. The company has the following inventory purchase transactions for 2021: Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 62 $ 63 $ 3,906 May 5 Purchase 166 64 10,624 Nov. 3 Purchase 183 66 12,078 411 $ 26,608 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO.

Answer 1

Satement Showing Ending Inventory Balance Using FIFO Method
Date	Particulars	RECEIPTS	ISSUES	BALANCE
		QUANTITY	RATE	AMOUNT	QUANTITY	RATE	AMOUNT	QUANTITY	RATE	AMOUNT
		(units)	($)	($)	(units)	($)	($)	(units)	($)	($)
		(A)	(B)	(C=A*B)	(D)	(E )	(F=D*E)	(G)	(H)	(I=G*H)
01 January 2021	opening balance	-	-	-	-	-	-	62	$ 63.00	$   3,906.00
05 May 2021	Purchase	166	$              64.00	$ 10,624.00	-	-	-	62	$ 63.00	$   3,906.00
		-	-	-	-	-	-	166	$ 64.00	$ 10,624.00
03 November 2021	Purchase	183	$              66.00	$ 12,078.00	-	-	-	62	$ 63.00	$   3,906.00
		-	-	-	-	-	-	166	$ 64.00	$ 10,624.00
		-	-	-	-	-	-	183	$ 66.00	$ 12,078.00
	Sale				62	$     63.00	$   3,906.00	151	$ 66.00	$   9,966.00
					166	$     64.00	$ 10,624.00	(183-32)
					32	$     66.00	$   2,112.00
	Ending Inventory							151	$ 66.00	$   9,966.00
Satement Showing Cost of Goods Sold Using FIFO Method
Particulars	QUANTITY	RATE	AMOUNT
	(units)	($)	($)
	(A)	(B)	(C=A*B)
Sale:	62	$         63.00	$        3,906.00
	166	$         64.00	$      10,624.00
	32	$         66.00	$        2,112.00
Total	260		$      16,642.00
Therefore total cost of goods sold of 260 units is $16642