Question

Determine Trumpana ending inventory and cost of goods sold under the FIFO perpetual basis.

Begin by preparing Trumpana perpetual inventory record under the​ first-in, first-out​ (FIFO) method for the year.

Transaction	Units		Sales in Units		Unit Cost		Total Cost
Beginning inventory 1/1	2,500				$53		$132,500
Purchases
March 30	3,000				68		204,000
July 15	850				76		64,600
September 1			3,600
Total available for sale	6,350						$401,100
Units sold September 1	(3,600)
Ending inventory	2,750

FIFO:					Cost of	Cost of
	Units	Unit	Total	Units	Goods Sold	Goods	Inventory
Transaction	Purchased	Cost	Cost	Sold	Per Unit	Sold	Balance
Beginning inventory 1/1
Purchase - March 30
Purchase - July 15
Sale - September 1

Answer 1

Answer- FIFO Method- Cost of ending inventory = $193800.

Cost of good sold = $207300.

Explanation-

FIFO Method
Goods purchased			Cost of goods sold	Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Jan-01						2500	53	132500
Mar-30	3000	68				2500	53	132500
						3000	68	204000
Jul-15	850	76				2500	53	132500
						3000	68	204000
						850	76	64600
Sep-01			2500	53	132500	1900	68	129200
			1100	68	74800	850	76	64600
Totals			3600		207300	2750		193800