Question

Vaughn Company’s record of transactions for the month of April was as follows.

Purchases							Sales
April 1	(balance on hand)		690	@	$6.00		April 3		575	@	$10.00
4			1,725	@	6.09		9		1,610	@	10.00
8			920	@	6.40		11		690	@	11.00
13			1,380	@	6.60		23		1,380	@	11.00
21			805	@	6.70		27		1,035	@	12.00
29			575	@	6.87				5,290
			6,095

Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.

Answer 1

Cost of goods sold: $33493.75

Cost of goods sold = Cost of goods available for sale - Cost of ending inventory = $38985 - $5491.25 = $33493.75

Cost of goods available for sale:
Purchase date	Units	Rate	Total Cost
Beginning balance	690	6.00	4140.00
Apr. 4	1725	6.09	10505.25
Apr. 8	920	6.40	5888.00
Apr. 13	1380	6.60	9108.00
Apr. 21	805	6.70	5393.50
Apr. 29	575	6.87	3950.25
Total	6095		38985.00

Ending inventory (units) = 6095 - 5290 = 805

Ending inventory:
Purchase date	Units	Rate	Total Cost
Apr. 29	575	6.87	3950.25
Apr. 21	230	6.70	1541.00
Total	805		5491.25