Question

Beginning inventory, purchases, and sales for Item Zeta9 are as follows:

Oct. 1 Inventory 59 units @ $19

Oct. 7 Sale 38 units

Oct. 15 Purchase 51 units @ $20

Oct. 24 Sale 27 units

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a)the cost of goods sold on October 24 and (b) the inventory on October 31.

a. Cost of goods sold on October 24 $

b. Inventory on October 31 $

Answer 1

					Units	Rate	Amount	Date
Part -(a)	Cost of goods sold on Oct 24			(59-38)	21	19	399	Oct 1
					6	20	120	Oct 15
	Cost of goods sold on Oct 24						519
	Under FIFO method, 38 units sold means 38 units of Oct,1 has been sold and 27 units sold means balance unit left in oct 1 has been sold and remaining balance from thereafter purchase.
Part -(2)	Inventory on October 31				Units	Rate	Amount	Date
					45	20	900	Oct 15