A company has beginning inventory of 17 units at a cost of $17 each on February...

A company has beginning inventory of 17 units at a cost of $17 each on February 1. On February 3, it purchases 27 units at $19 each. 21 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 21 units that are sold?

Solutions

Expert Solution


Cost of Goods Sold for 21 Units sold on 15 Feb

Date	Qty	Rate	Amount
Beg.	17	17	289
Feb.3	4	19	76

Total Cost of Goods sold	21		365

Cost of 21 units that are sold = $365



Note: We have taken 17 units at beg. Rate and 4 units at purchase rate of Feb.3 which means out of total 21 units which are sold. We took 17 units which were in our hand at the beginning of month and 4 units took from the purchase made on Feb.3


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ekkarill92 answered 1 year ago

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