Question

Tamarisk Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is available.

		Units		Unit Cost		Total Cost
April 1 inventory		260		$15			$ 3,900
April 15 purchase		430		18			7,740
April 23 purchase		310		20			6,200
		1,000					$17,840

Compute the April 30 inventory and the April cost of goods sold using the FIFO method.

Ending inventory		$
Cost of goods sold		$

Answer 1

Solution:

Computation of COGS and ending inventory - Periodic FIFO
Particulars	Cost of goods available for sale	Cost of goods sold	Ending Inventory
Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	260	$15.00	$3,900	260	$15.00	$3,900.00	0	$15.00	$0.00
Purchases:
15-Apr	430	$18.00	$7,740	290	$18.00	$5,220.00	140	$18.00	$2,520.00
23-Apr	310	$20.00	$6,200	0	$20.00	$0.00	310	$20.00	$6,200.00
Total	1000		$17,840	550		$9,120.00	450		$8,720.00

Ending inventory = $8,720

Cost of goods sold = $9,120