Question
In: Accounting
7. FIFO Method: Perpetual Inventory System Assume the following data with regard to inventory for Vegan...
7. FIFO Method: Perpetual Inventory System
Assume the following data with regard to inventory for Vegan Company:
| Aug. 1 | Inventory | 40 | units @ $10 per unit | $ 400 | ||
| 8 | Purchase | 50 | units @ $11 per unit | 550 | ||
| 22 | Purchase | 35 | units @ $12 per unit | 420 | ||
| Goods available for sale | 125 | units | $1,370 | |||
| Aug. 15 | Sale | 45 | units | |||
| 28 | Sale | 25 | units | |||
| Inventory, Aug. 31 | 55 | units | ||||
Calculate the cost of ending inventory and cost of goods sold according to the FIFO method under the perpetual inventory system.
| FIFO Method | |
| Cost of ending inventory: | $ |
| Cost of goods sold: | $ |
Solutions
Expert Solution
| FIFO Method | ||||||||||||||
| Cost of ending inventory: | $ 640 | |||||||||||||
| Cost of goods sold: | $ 730 | |||||||||||||
| Working: | ||||||||||||||
| Under Perpetual inventory method, inventory records are updated as and when transaction takes place. | ||||||||||||||
| FIFO stands for First-in-First-Out.It means inventory which is bought first is sold first. | ||||||||||||||
| Date | Increase | Decrease | Ending Balance | |||||||||||
| Unit | Unit rate | Cost | Unit | Unit rate | Cost | Unit | Unit rate | Cost | ||||||
| Aug. 1 | 40 | $ 10 | $ 400 | 40 | $ 10 | $ 400 | ||||||||
| Aug. 8 | 50 | $ 11 | $ 550 | 40 | $ 10 | $ 400 | ||||||||
| 50 | $ 11 | $ 550 | ||||||||||||
| 90 | $ 950 | |||||||||||||
| Aug. 15 | 40 | $ 10 | $ 400 | |||||||||||
| 5 | $ 11 | $ 55 | 45 | $ 11 | $ 495 | |||||||||
| Aug. 22 | 35 | $ 12 | $ 420 | 45 | $ 11 | $ 495 | ||||||||
| 35 | $ 12 | $ 420 | ||||||||||||
| 80 | $ 915 | |||||||||||||
| Aug. 28 | 25 | $ 11 | $ 275 | 20 | $ 11 | $ 220 | ||||||||
| 35 | $ 12 | $ 420 | ||||||||||||
| 125 | $ 1,370 | 70 | $ 730 | 55 | $ 640 | |||||||||
ekkarill92 answered 1 year agoRelated Solutions
PR 7-1A FIFO perpetual inventory
PR 7-1A FIFO perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:DateTransactionNumberof UnitsPer UnitTotalJan. 1Inventory7,500$75.00$562,50010Purchase22,50085.001,912,50028Sale11,250150.001,687,50030Sale3,750150.00562,500Feb. 5Sale1,500150.00225,00010Purchase54,00087.504,725,00016Sale27,000160.004,320,00028Sale25,500160.004,080,000Mar. 5Purchase45,00089.504,027,50014Sale30,000160.004,800,00025Purchase7,50090.00675,00030Sale26,250160.004,200,000Instructions 1. Record the inventory, purchases, and cost of mer inventory record similar to the one illustrate method. 2 Determine the total sales and the total cost of nalize the entries in the sales and cost of me sales were on account. 3. Determine the gross profit from sales for the period of...
Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 200 units at $30 7 Sale 160 units 15 Purchase 180 units at $33 24 Sale 150 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of goods sold on October 24 and (b) the inventory on October 31. a. Cost of goods sold on October 24b. Inventory on October 31
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
90
$450
$40,500
8
Purchase
180
540
97,200
11
Sale
120
1,500
180,000
30
Sale
75
1,500
112,500
May 8
Purchase
150
600
90,000
10
Sale
90
1,500
135,000
19
Sale
45
1,500
67,500
28
Purchase
150
660
99,000
June 5
Sale
90
1,575...
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
60
$225
$13,500
8
Purchase
120
270
32,400
11
Sale
80
750
60,000
30
Sale
50
750
37,500
May 8
Purchase
100
300
30,000
10
Sale
60
750
45,000
19
Sale
30
750
22,500
28
Purchase
100
330
33,000
June 5
Sale
60
790...
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
25
$1,200
$30,000
8
Purchase
75
1,240
93,000
11
Sale
40
2,000
80,000
30
Sale
30
2,000
60,000
May 8
Purchase
60
1,260
75,600
10
Sale
50
2,000
100,000
19
Sale
20
2,000
40,000
28
Purchase
80
1,260
100,800
June 5
Sale
40
2,250...
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
48
$225
$10,800
8
Purchase
96
270
25,920
11
Sale
64
750
48,000
30
Sale
40
750
30,000
May 8
Purchase
80
300
24,000
10
Sale
48
750
36,000
19
Sale
24
750
18,000
28
Purchase
80
330
26,400
June 5
Sale
48
790...
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
66
$300
$19,800
8
Purchase
132
360
47,520
11
Sale
88
1,000
88,000
30
Sale
55
1,000
55,000
May 8
Purchase
110
400
44,000
10
Sale
66
1,000
66,000
19
Sale
33
1,000
33,000
28
Purchase
110
440
48,400
June 5
Sale
66
1,050...
FIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and...
FIFO Perpetual Inventory
The beginning inventory of merchandise at Rhodes Co. and data on
purchases and sales for a three-month period ending June 30 are as
follows:
Date
Transaction
Number
of Units
Per
Unit
Total
Apr. 3
Inventory
42
$150
$6,300
8
Purchase
84
180
15,120
11
Sale
56
500
28,000
30
Sale
35
500
17,500
May 8
Purchase
70
200
14,000
10
Sale
42
500
21,000
19
Sale
21
500
10,500
28
Purchase
70
220
15,400
June 5
Sale...
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
72
$450
$32,400
8
Purchase
144
540
77,760
11
Sale
96
1,500
144,000
30
Sale
60
1,500
90,000
May 8
Purchase
120
600
72,000
10
Sale
72
1,500
108,000
19
Sale
36
1,500
54,000
28
Purchase
120
660
79,200
June 5
Sale
72
1,575...
FIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and data on purchases and...
FIFO Perpetual Inventory
The beginning inventory of merchandise at Dunne Co. and data on
purchases and sales for a three-month period ending June 30 are as
follows:
Date
Transaction
Number
of Units
Per
Unit
Total
Apr. 3
Inventory
60
$300
$18,000
8
Purchase
120
360
43,200
11
Sale
80
1,000
80,000
30
Sale
50
1,000
50,000
May 8
Purchase
100
400
40,000
10
Sale
60
1,000
60,000
19
Sale
30
1,000
30,000
28
Purchase
100
440
44,000
June 5
Sale...
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