Perpetual Inventory Using FIFO Beginning inventory purchases

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 175 units at $30 7 Sale 155 units 15 Purchase 200 units at $33 24 Sale 140 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. a. Cost of goods sold on October 24 $ b. Inventory on October 31

Solution

Cost of goods sold on October 24=

= 20 units @$ 30 + 120 units @ $ 33

= $ 600 + $ 3960

= $4560

Inventory on October 31=

80 units @ $ 33

= $ 2640