Answer and Explanation:
The computation of the ending inventory and cost of goods sold using FIFO method as follows:
Given that
Total goods available for sale = 1000
Units sold = 650
Based on the above information
The Ending inventory is
= 1000 - 650
= 350
Now 350 units comprise of 270 units of April 23 and the remaining 80 units would be of April 15
SO,
Ending inventory value is
= 270 × 44 + 80 × 41
= $15,160
ANd,
Cost of goods sold = Cost of goods available for sale - Ending inventory
= $39,640 - $15,160
= $24,480