Question

Shellhammer Company's inventory records show the following data for the month of September:

			Units			Unit Cost
Inventory,	September 1		100			$3.34
Purchases:	September 8		450			3.50
	September 18		350			3.70

A physical inventory on September 30 shows 200 units on hand.

Calculate the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodic inventory system.

Ending inventory		$
Cost of goods sold		$

Answer 1

Answer:

   Shellhammer Company

Inventory Records Using FIFO

Date

Purchases

Sales

Balance of Inventory

	Units	Unit Cost	Amount ($)	Units	Unit Cost	Amount ($)	Units	Units Cost	Amount ($)
Sept. 1							100	3.34	334
Sept. 8	450	3.50	1575
Sept.18	350	3.70	1295
				100	3.34	334
				450	3.50	1575
				150	3.70	555
Sept. 30							200	3.70	740

The value of the Ending Inventory on September 30 is $ 740.

Calculation of Cost of Goods Sold

Particulars	Amount (In $)
Opening Inventory	334
Add: Purchase	2870
Less: Closing Inventory	(740)
Cost of Goods Sold	2464