Question

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

Oct. 1		Inventory	43 units @ $22
7		Sale	28 units
15		Purchase	48 units @ $25
24		Sale	24 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.

Answer 1

Date	Purchases			Cost of goods sold			Inventory on Hand
	Quantity	Unit cost	Total Cost	Quantity	Unit cost	Total Cost	Quantity	Unit Cost	Total Cost
Oct-01							43	22	946
Oct-07				28	22	616	15	22	330
Oct-15	48	25	1,200				15	22	330
							48	25	1,200
Oct-24				15	22	330
				9	25	225	39	25	975
Total						1,171			975

(a) the cost of goods sold on October 24 = $555

(b) the inventory on October 31 == $975

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