Question

3. Beginning inventory, purchases, and sales data for hammers are as follows:?

	Mar. 3	Inventory	12 units at $15
	11 .	Purchase	13units at $17
	14	Sale	18 units
	21	Purchase	9 units at $20
	25	Sale	10 units

? Assuming the business maintains a perpetual inventory system, complete the inventory cards and calculate the cost of merchandise sold and ending inventory using the first-in, first-out inventory assumption.??

FIFO ?

Answer 1

Inventory Card:
Date	Purchases			Sales			Balance
	Units	PU	Total Cost	Units	PU	Total Cost	Units	PU	Total Cost
03-Mar							12.00	15.00	180.00
11-Mar	13.00	17.00	221.00				12.00	15.00	180.00
							13.00	17.00	221.00
14-Mar				12.00	15.00	180.00	7.00	17.00	119.00
				6.00	17.00	102.00
21-Mar	9.00	20.00	180.00				7.00	17.00	119.00
							9.00	20.00	180.00
25-Mar				7.00	17.00	119.00	6.00	20.00	120.00
				3.00	20.00	60.00
	34.00		581.00	28.00		461.00	6.00		120.00
	Units	Total Cost
Cost of Goods Sold:	28.00	461.00
Ending Inventory	6.00	120.00
Working Note:
First Sales on 14.03:
First Sales from Opening	12.00
Balance from 11.03	6.00
TotalUnits	18.00
Sales on 25.03:
First Sales from 11.03	7.00
Balance from 21.03	3.00
TotalUnits	10.00