Question

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales for Item Zeta9 are as follows:

Oct. 1		Inventory	43 units @ $17
7		Sale	31 units
15		Purchase	39 units @ $20
24		Sale	16 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 24	$
b. Inventory on October 31

Answer 1

	purchases			cost of goods sold			inventory
	units	per unit	total	units	per unit	total	units	per unit	total
1-Oct							43	17	731
7-Oct				31	17	527	12	17	204
15-Oct	39	20	780				12	17	204
							39	20	780
24-Oct				12	17	204
				4	20	80	35	20	700
a)	cost of goods sold on oct 24			284
b)	inventory on oct 31			700