Please do it by type not pics. Date Event Number of Units Price/Unit 1-Jan Beg. Inv 3,000...

Please do it by type not pics.

Date Event	Number of Units	Price/Unit
1-Jan Beg. Inv	3,000	4.50
5-Jan Purchased	5,000	3.00
14-Jan Sold	4,000	4.00
27-Jan Purchased	6,000	2.00
29-Jan Sold	2,500	3.50

1.Purple Cow Inc. uses the perpetual first-in-first-out method to account for their inventory. Using the following information calculate the ending inventory?

2.Purple Cow Inc. uses the periodic first-in-first-out method to account for their inventory. Using the following information calculate the cost of goods sold for the period?

Expert Solution

Under the First in first out (FIFO) method of inventory valuation, Cost of goods sold consists of the units from beginning inventory and earliest purchases. Ending inventory consists of the units from recent purchases.

1.

Date	Particulars	Units * Unit cost	Cost of goods sold	Ending inventory
Jan. 1	Beginning inventory	3,000*$4.5 = $13,500		3,000*$4.5 = $13,500
Jan. 5	Purchases	5,000*$3 = $15,000		3,000$4.5 = $13,500 5,000$3 = $15,000
Jan. 14	Sales		3,000$4.5 = $13,500 1,000$3 = $3,000	4,000*$3 = $12,000
Jan. 27	Purchases	6,000*$2 = $12,000		4,000$3 = $12,000 6,000$2 = $12,000
Jan. 29	Sales		2,500*$3 = $7,500	1,500$3 = $4,500 6,000$2 = $12,000

Ending inventory = $4,500 + $12,000 = $16,500

2.

Date	Particulars	Units * Unit cost	Cost of goods sold	Ending inventory
Jan. 1	Beginning inventory	3,000*$4.5 = $13,500		3,000*$4.5 = $13,500
Jan. 5	Purchases	5,000*$3 = $15,000		3,000$4.5 = $13,500 5,000$3 = $15,000
Jan. 27	Purchases	6,000*$2 = $12,000		3,000$4.5 = $13,500 5,000$3 = $15,000 6,000*$2 = $12,000
Jan. 14	Sales		3,000$4.5 = $13,500 1,000$3 = $3,000	4,000$3 = $12,000 6,000$2 = $12,000
Jan. 29	Sales		2,500*$3 = $7,500	1,500$3 = $4,500 6,000$2 = $12,000

Cost of goods sold = $13,500 + $3,000 + $7,500 = $24,000

ekkarill92 answered 2 years ago

Question (2) Units Unit Cost ($) Total Jan. 1 (Beg.) 100 15

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