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.

Homework Answers

Answer #1

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

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