Question

Date	Quantity Purchased	Quantity Sold	Cost per Unit	Quantity on Hand
1/1			$10	8
3/25	25		$12	33
7/14		15		18
10/22	16		$14	34
12/31		4		30

Assuming Christy’s Cookie Company uses the FIFO inventory cost allocation method, determine the ending inventory balance as of December 31st and the Cost of Goods Sold for the year. Christy’s Cookie Company uses the periodic system to track changes in the inventory account.

cost of Goods Sold for the year $_______________________

ending Inventory at 12.31 $________________________

Answer 1

****** Cost goods Sold = 212

****** Ending Inventory = 369.30

In First in First out method , the items will sale on the cost first occured. After a cost bundle unit finished then will enter to the next cost bundle. Here first out opening cost till 8 quantity and then out first purchase quantity with their cost

Total Sales on 7/14 = 15

From this 8 units cost is 10 per unit and 7 unit cost of 12 per item

So Cost of sales on first sales transaction = (8 x 10) + ( 7 x 12) = 80 + 84 = 164

Total Sales on 12/31 = 4

These units cost is 12 per itme = 4 x 12 = 48

Total Cost of Goods Sold = 164 + 48 = 212

Ending Inventory

Quantity = 30

unit price in information = 12.31

Then Value = 30 x 12.31