Question

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to the ending inventory using FIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	150 units @ $10.00
5	Purchase	220 units @ $12.00
10	Sales		140 units @ $20.00
15	Purchase	100 units @ $13.00
24	Sales		90 units @ $21.00

Answer 1

Answer:

Cost assigned to ending inventory using FIFO = $ 2,980.

Calculations:

First-in, First-out Method
	Purchases			Sold			Closing
Date	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
1-May			$             -			$             -	150.00	$ 10.00	$      1,500
5-May	220.00	$ 12.00	$      2,640	-	$       -	$             -	150.00	$ 10.00	$      1,500
							220.00	$ 12.00	$      2,640
10-May	-	$       -	$             -	140.00	$ 10.00	$      1,400	10.00	$ 10.00	$         100
							220.00	$ 12.00	$      2,640
15-May	100.00	$ 13.00	$      1,300	-	$       -	$             -	10.00	$ 10.00	$         100
							220.00	$ 12.00	$      2,640
							100.00	$ 13.00	$      1,300
24-May	-	$       -	$             -	10.00	$ 10.00	$         100	140.00	$ 12.00	$      1,680
				80.00	$ 12.00	$         960	100.00	$ 13.00	$      1,300
Total	320.00		$ 3,940.00	230.00		$ 2,460.00	240.00		$ 2,980.00

In case of any doubt, please comment.