Question

In June 2014, Datong Company sold a total of 13,000 units of product A at a price of $ 11 per unit. The following is the initial inventory and purchase of product A in June:

6/1 Initial inventory 5,000 units, unit cost: $5

6/5 Purchase 3,000 units, unit cost: $6

6/14 Purchase 8,000 units, unit cost: $5

6/24 Purchase 2,000 units, unit cost: $4

Trial work:

Ending inventory of Datong Company at the end of June by First-in first-out method (5%)

Answer 1

Date	Particulars	Purchase	Sales	Balance
		Units	Price	Cost	Units	Price	Cost	Units	Price	Cost
Jun-01	Inventory	5000	5	25000
Jun-05	Purchase	3000	6	18000
Jun-14	Purchase	8000	5	40000
Jun-24	Purchase	2000	4	8000
Jun-30	Sale				5000	5	25000
					3000	6	18000
					5000	5	25000	3000	5	15000
								2000	4	8000
Total		18000		91000	13000		68000	5000		23000

Ending Inventory according to FIFO = 5000 units for $23000

Units purchased first will be sold first.