Question

Beginning inventory, purchases, and sales for an inventory item are as follows:

Sep. 1	Beginning Inventory	32 units	$25
5	Sale	19 units
17	Purchase	33 units	$26
30	Sale	34 units

Assuming a perpetual inventory system and the first-in, first-out method, determine (a) the cost of the goods sold for the September 30 sale and (b) the inventory on September 30.

a. Cost of goods sold	$
b. Inventory, September 30	$

Answer 1

	Cost of goods purchase	Cost of goods sold	Ending inventory
	Units	Units cost	Total cost	Units	Unit cost	Total cost	Units	Unit cost	Total cost
Sept. 1							32	25	800
Sept 5				19	25	475	13	25	325
Sept 17	33	26	858				13	25	325
						33	26	858
Sept 30				13	25	325	12	26	312
			21	26	546
Total						$871			$312

a.

Cost of goods sold = $871

b.

Cost of ending inventory = $312