Question

Sheffield Skateshop Ltd. reports the following inventory transactions for its skateboards for the month of April. The company uses a perpetual inventory system. Date Explanation Units Unit Cost Total Cost Apr. 1 Beginning inventory 30 $54 $1,620 6 Purchases 15 46 690 9 Sales (35 ) 14 Purchases 20 43 860 20 Sales (25 ) 28 Purchases 20 32 640 (a) Determine the cost of goods sold and cost of ending inventory using FIFO. Cost of Goods Sold $ Ending Inventory $

Answer 1

Date	Purchases			Cost of goods sold			Inventory on Hand
	Quantity	Unit cost	Total Cost	Quantity	Unit cost	Total Cost	Quantity	Unit Cost	Total Cost
Apr-01							30	54	1,620
Apr-06	15	46	690				30	54	1,620
							15	46	690
Apr-09				30	54	1,620
				5	46	230	10	46	460
Apr-14	20	43	860				10	46	460
							20	43	860
Apr-20				10	46	460
				15	43	645	5	43	215
Apr-28	20	32	640				5	43	215
							20	32	640
Total						2,955			855

Cost of goods sold = $2,955

cost of Ending inventory = $855