Question

Mosher, Inc. had the following balances and transactions during 2017:

Beginning Merchandise Inventory as of January 1, 2017    400 units at $80

March 10 Sold 80 units

June 10 Purchased 800 units at $ 85

October 30 Sold 480 units

What would be reported for Ending Merchandise Inventory on the balance sheet at December 31, 2017 if the perpetual inventory system and the first minus ? in, first minus ?out inventory costing method are used?

Answer 1

FIFO (Perpetual)
	Receipts				Cost of Goods Sold			Balance
Date	Description	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1 Jan 2017	Beginning Inventory	400	$80	$32,000
10 March 2017	Sold				80	$ 80.00	$ 6,400	320	$80	$25,600
10 June 2017	Purchases	800	$85	$68,000
30 Oct 2017	Sold				320	$ 80.00	$ 25,600
					160	$ 85.00	$ 13,600	640	$85	$ 54,400
	Ending	1,200		$100,000	560		$ 45,600	640		$ 54,400

Ending Inventory $ 54,400 for 640 unit