Question

G.C. Murphy's inventories are determined using FIFO. G.C. Murphy's provided the following information for the first...

G.C. Murphy's inventories are determined using FIFO. G.C. Murphy's provided the following information for the first quarter of 2016:

 Beginning inventory, January 1, 2016 60 units @ \$42.00 (1) Purchase 40 units @ \$37.50 (2) Purchase 95 units @ \$44.00 (3) Purchase 30 units @ \$43.00 Ending inventory, March 31, 2016 45 units
 a. Compute the company's cost of goods sold for the first quarter. b. Computer the ending inventory to be reported on G.C. Murphy's balance sheet at March 31, 2016.

 Units Cost per unit value Opening Stock 60 \$ 42.00 \$ 2,520.00 Purchases 1 40 \$ 37.50 \$ 1,500.00 2 95 \$ 44.00 \$ 4,180.00 3 30 \$ 43.00 \$   1,290.00 Total 225 units \$ 9,490.00
 FIFO Total Units Available for sale 225 Units Sold 180 Closing Stock in Units 45 Valuation Closing stock 30 @ \$    43.00 \$    1,290.00 15 @ \$    44.00 \$        660.00 Value Of Closing Stock \$    1,950.00 Cost of Goods sold (9490-1950) \$    7,540.00

Requirement a

Company’s cost of goods sold for the first quarter= \$7,450.

Requirement b

Ending inventory to be reported on G.C. Murphy's balance sheet at March 31, 2016= \$1,950