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Sheffield Skateshop Ltd. reports the following inventorytransactions for its skateboards for the month of April....

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 $

Solutions

Expert Solution

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


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