Question

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual 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 160 units @ $11

May 5 Purchase 225 units @ $13

May 10 Sales 145 units @ $21

May 15 Purchase 105 units @ $14

May 24 Sales 95 units @ $22

Select one:

a. $3215

b. $3240

c. $2940

d. $3355

e. $2800

Answer 1

Cost of Merchandise sold Schedule
First-in-first-out Method [FIFO]
Date	Goods Purchased	Cost of goods sold	Inventory Balance
Qty Purchased	Cost per unit	Total Cost	Qty Sold	Cost per unit	Cost of goods sold	Inventory Qty	Cost per unit	Total Cost
May 1							160	11	1,760
May 5	225	13	2,925				160	11	1,760
							225	13	2,925
May 10				145	11	1,595	15	11	165
							225	13	2,925
May 15	105	14	1,470				15	11	165
							225	13	2,925
							105	14	1,470
May 24				15	11	165	145	13	1,885
				80	13	1,040	105	14	1,470
TOTAL						2,800	250		3,355

“The cost assigned to the ending inventory using FIFO will be (d).$3,355”