Question

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales for Item Zeta9 are as follows: (Please show steps, this is confusing, thank you!)

Oct. 1		Inventory	43 units @ $25
7		Sale	31 units
15		Purchase	28 units @ $28
24		Sale	21 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

Date	purchases			Cost of goods sold			ending invnetory
	units	per unit	total cost	units	per unit	total cost	units	per unit	total cost
1-Oct							43	25	1075
7-Oct				31	25	775	12	25	300
15-Oct	28	28	784				12	25	300
							28	28	784
24-Oct				12	25	300
				9	28	252	19	28	532
a.	cost of goods sold on oct 24				552
b.	inventory on Oct 31				532