Question

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

Sep. 1	Beginning Inventory	30	units	@	$13
5	Sale	17	units
17	Purchase	32	units	@	$15
30	Sale	32	units

Assuming a perpetual inventory system and the first-in, first-out method:

a. Determine the cost of the goods sold for the September 30 sale.
$

b. Determine the inventory on September 30.
$

Answer 1

	Available for sale			Cost of goods sold			Ending Inventory
Date	Units	Unit cost	Total Cost	Units	Unit cost	Total Cost	Units	Unit Cost	Total Cost
Sep-01							30	13	390
Sep-05				17	13	221	13	13	169
Sep-17	32	15	480				13	13	169
							32	15	480
Sep-30				13	13	169
				19	15	285	13	15	195
Total						675			195

a.

The cost of the goods sold for the September 30 sale= $675

b.

The inventory on September 30 = $195

Kindly comment if you need further assistance.

Thanks‼!