Question

# Klump Co. Klump Co. uses a perpetual inventory system and had the following inventory transactions for...

Klump Co.
Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June.

 June 1 On hand, 50 units at \$18.00 each \$ 900.00 4 Purchased 115 units at \$18.20 each 2,093.00 5 Sold 100 units 10 Purchased 75 units at \$18.25 each 1,368.75 24 Sold 50 units Total cost of goods available for sale \$4,361.75 30 On hand, 90 units

Refer to the information provided for Klump Co. If the company uses the FIFO inventory costing method, the amount of ending inventory reported on the balance sheet is:

 \$1,630.00 \$1,628.00 \$1,641.75 \$1,810.00

1B,

Klump Co.

Refer to the information provided for Klump Co. The company uses the perpetual inventory system. If the company uses FIFO inventory costing method, cost of goods sold for the month of June is:

 \$2,551.75 \$1,820.00 \$2,720.00 \$2,725.00

Supporting calculations:

 Ending Inventory: Units (a) Unit Price (b) Amount (a*b) From June 10th Purchases 75 \$18.25 \$1,369 From June 4th Purchases (90 units - 75 units) 15 \$18.20 \$273 Ending Inventory under FIFO 90 \$1,641.75

Therefore, ending inventory under FIFO is \$1,641.75.

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Supporting calculations:

 Cost of Goods Sold Units (a) Unit Price (b) Amount (a*b) Sale on June 5th: From June 1 on hand 50 \$18 \$900 From June 4 Purchases (100 - 50) 50 \$18.20 \$910 Sale on June 24th: From June 4 Purchases 50 \$18.20 \$910 Cost of Goods Sold under FIFO 150 \$2,720

Therefore, cost of goods sold under FIFO is \$2,720.

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