Salmone Company reported the following purchases and sales o

Salmone Company reported the following purchases and sales of its only product Salmone uses o perpetual inventory system Determine the cost assigned to cost of goods sold using FIFO. Activities Beginning Inventory Date Units Acquired at Cost Units Sold at Retall May 1 330 units $18 310 units@$28 5 Purchase 1 Sales 15 Purchase 24 Sales 230 units @ $28 190 units$21 180 units@$29

Solution

Calculation of cost ofgoods sold: Purchases Cost of goods sold Inventory Balance Particulars Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total Beginning Invenory - - - - - - 330 18 5940 Purchase May 5 310 20 6200 330 18 5940 310 20 6200 Sale May 10 230 18 4140 100 18 1800 310 20 6200 Purchase May 15 190 21 3990 100 18 1800 310 20 6200 190 21 3990 Sales May 24 100 18 1800 230 20 4600 80 20 1600 190 21 3990 Total 410 7540 Therefore cost of goods sold= $7540