Question

Sunland Company’s record of transactions for the month of April was as follows.

Purchases							Sales
April 1	(balance on hand)		1,020	@	$6.00		April 3		850	@	$10.00
4			2,550	@	6.08		9		2,380	@	10.00
8			1,360	@	6.40		11		1,020	@	11.00
13			2,040	@	6.50		23		2,040	@	11.00
21			1,190	@	6.60		27		1,530	@	12.00
29			850	@	6.79				7,820
			9,010

Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO. (Round answer to 0 decimal places, e.g. 2,760.)

Cost of goods sold

$

Answer 1

Answer

Cost of goods sold = $ 49,198

Calculations:

First-in, First-out Method
	Purchases			Sold			Balance
Date	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
1-Apr							1,020	$ 6.00	$   6,120.00
3-Apr	1,020			850	$ 6.00	$   5,100	170	$ 6.00	$   1,020.00
4-Apr	2,550	$ 6.08	$ 15,504.00				170	$ 6.00	$   1,020.00
							2,550	$ 6.08	$ 15,504.00
9-Apr				170	$ 6.00	$   1,020
				2,210	$ 6.08	$ 13,437	340	$ 6.08	$   2,067.20
8-Apr	1,360	$ 6.40	$   8,704.00				340	$ 6.08	$   2,067.20
							1,360	$ 6.40	$   8,704.00
11-Apr				340	$ 6.08	$   2,067
				680	$ 6.40	$   4,352	680	$ 6.40	$   4,352.00
13-Apr	2,040	$ 6.50	$ 13,260.00				680	$ 6.40	$   4,352.00
							2,040	$ 6.50	$ 13,260.00
21-Apr	1,190	$ 6.60	$   7,854.00				680	$ 6.40	$   4,352.00
							2,040	$ 6.50	$ 13,260.00
							1,190	$ 6.60	$   7,854.00
23-Apr				680	$ 6.40	$   4,352
				1,360	$ 6.50	$   8,840	680	$ 6.50	$   4,420.00
							1,190	$ 6.60	$   7,854.00
27-Apr				680	$ 6.50	$   4,420
				850	$ 6.60	$   5,610	340	$ 6.60	$         2,244
29-Apr	850	$ 6.79	$         5,772				340	$ 6.60	2,244
							850	$ 6.79	5,772
TOTAL	9,010			7,820		$ 49,198	1,190		$ 82,801.90