Question

The following units of a particular item were available for sale during the calendar year:

Jan. 1	Inventory	4,000 units at $20
Apr. 19	Sale	2,500 units
June 30	Purchase	6,000 units at $24
Sept. 2	Sale	4,500 units
Nov. 15	Purchase	1,000 units at $25

The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Schedule of Cost of Goods Sold FIFO Method
	Purchases			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan. 1							fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Apr. 19				fill in the blank 4	$fill in the blank 5	$fill in the blank 6	fill in the blank 7	fill in the blank 8	fill in the blank 9
June 30	fill in the blank 10	$fill in the blank 11	$fill in the blank 12				fill in the blank 13	fill in the blank 14	fill in the blank 15
							fill in the blank 16	fill in the blank 17	fill in the blank 18
Sept. 2				fill in the blank 19	fill in the blank 20	fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24
				fill in the blank 25	fill in the blank 26	fill in the blank 27
Nov. 15	fill in the blank 28	fill in the blank 29	fill in the blank 30				fill in the blank 31	fill in the blank 32	fill in the blank 33
							fill in the blank 34	fill in the blank 35	fill in the blank 36
Dec. 31	Balances

Answer 1

Solution:

Schedule of Cost of Goods Sold
FIFO Method
Date	Purchases Quantity	Purchases Unit Cost	Purchases Total Cost	Cost of Goods Sold Quantity	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
1-Jan							4000	$20.00	$80,000.00
19-Apr				2500	$20.00	$50,000.00	1500	$20.00	$30,000.00
30-Jun	6000	$24.00	$144,000.00				1500	$20.00	$30,000.00
							6000	$24.00	$144,000.00
2-Sep				1500	$20.00	$30,000.00	3000	$24.00	$72,000.00
				3000	$24.00	$72,000.00
15-Nov	1000	$25.00	$25,000.00				3000	$24.00	$72,000.00
							1000	$25.00	$25,000.00
30-Nov	Balances					$152,000.00	4000		$97,000.00