Question

Whispering Winds Corp. has the following inventory data: July 1 Beginning Inventory 37 units at $18 $666 7 Purchases 129 units at $19 2451 22 Purchases 18 units at $20 360 $3477 A physical count of merchandise inventory on July 30 reveals that there are 46 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is

Answer 1

Whispering Winds Corp.

Using the FIFO inventory method, the amount allocated to cost of goods sold for July is:

= $2,585

Step-by-step explanation:

a) Data and Calculations:

Date Description Units Unit Cost Total Cost

July 1 Beginning Inventory 37 $18 $666

July 7 Purchases 129 $19 2,451

July 22 Purchases 18 $20 360

July 30 Total available 184 $3,477

July 30 Ending inventory 46

July 30 Units sold 138

Cost of goods sold, using FIFO inventory method:

Date Description Units Unit Cost Total Cost

July 1 Beginning Inventory 37 $18 $666

July 7 Purchases 101 $19 1,919

Total cost of goods sold = $2,585

Ending inventory = $892 (18 * $20 + 28 * $19)