Question

Fifo Exercise

Use the following information to calculate the value of inventory on hand on Mar 31 and cost of goods sold during March in FIFO periodic inventory system and under FIFO perpetual inventory system.

Mar 1 Beginning Inventory 68 units @ $15.00 per unit
5 Purchase 140 units @ $15.50 per unit
9 Sale 94 units @ $19.00 per unit
11 Purchase 40 units @ $16.00 per unit
16 Purchase 78 units @ $16.50 per unit
20 Sale 116 units @ $19.50 per unit
29 Sale 62 units @ $21.00 per unit

Answer 1

In FIFO method the cost of goods sold and Ending inventory remains same for both periodic inventory system and perpetual inventory system

Periodic inventory system:

Cost of goods sold - $4,226

Ending inventory - $$891

perpetual inventory system:

Cost of goods sold - $4,226

Ending inventory - $$891

Working Notes:

Cost of Goods sold
Date	units	Per unit	Total
1-Mar	68	$15	$1,020
5-Mar	140	$15.5	$2,170
11-Mar	40	$16	$640
16-Mar	24	$16.5	$396
Total	272		$4,226

Ending Inventory
Date	units	Per unit	Total
16-Mar	54	$16.5	$891
Total	54		$891