Brief Exercise 6-5 Calculate ending inventory and cost of goods sold using FIFO (LO6-3) During the...

Brief Exercise 6-5 Calculate ending inventory and cost of goods sold using FIFO (LO6-3)

During the year, Wright Company sells 440 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year.

Date	Transaction	Number of Units	Unit Cost	Total Cost
Jan. 1	Beginning inventory	60	$76	$	4,560
May 5	Purchase	220	79		17,380
Nov. 3	Purchase	170	84		14,280

		450		$	36,220

Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.

Expert Solution

Calculations as per FIFO
Ending Inventory = $ 840
Cost of Goods Sold = $ 35,380
Working for above answer

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	60	$ 76.00	$ 4,560.00	60	$ 76.00	$ 4,560.00	0	$ 76.00	$ -
Purchases:
05-May	220	$ 79.00	$ 17,380.00	220	$ 79.00	$ 17,380.00	0	$ 79.00	$ -
03-Nov	170	$ 84.00	$ 14,280.00	160	$ 84.00	$ 13,440.00	10	$ 84.00	$ 840.00
TOTAL	450		$ 36,220.00	440		$ 35,380.00 = Answer	10		$ 840.00 = Answer

8

ekkarill92 answered 1 year ago

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Brief Exercise 6-5 Calculate ending inventory and cost of goods sold using FIFO (LO6-3) During the...

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