Question

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 450 units. Ending inventory at January 31 totals 170 units.

	Units	Unit Cost
Beginning inventory on January 1	410	$	4.00
Purchase on January 9	90		4.20
Purchase on January 25	120		4.30

Required:
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.

Perpetual FIFO:

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

January 1

January 9

$0.00

January 25

January 26

Totals

Answer 1