Question

Shown below is activity for one of the products of Denver Office Equipment:

January 1 balance, 600 units @ $50 $30,000
Purchases:
January 10:	600 units @ $55
January 20:	1,200 units @ $58
Sales:
January 12:	900 units
January 28:	800 units

Required:
Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses FIFO.

Ending Inventory	?
Cost of goods sold

Answer 1

Particulars	Qty		Rate	Amount
Opening Balance	600	units @	50	30,000
Purchases
10-Jan	600	units @	55	33,000
20-Jan	1,200	units @	58	69,600
Sales
12-Jan	-900
28-Jan	-800
Closing Inventory	700	units @	58	40,600
Cost of goods sold
Opening Balance	600	units @	50	30,000
10-Jan	600	units @	55	33,000
20-Jan	500	units @	58	29,000
Cost of goods sold				92,000