Question

Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December: Activity Units Purchase Price (per unit) Sale Price (per unit) Beginning inventory 10 $8.00 Purchase 1, Dec. 2 22 8.80 Purchase 2, Dec. 5 26 9.05 Sale 1, Dec. 7 19 $20.00 Sale 2, Dec. 10 25 20.00 Purchase 3, Dec. 12 12 9.80 Sale 3, Dec. 14 20 20.00 Anderson's uses a perpetual inventory system. All purchases and sales were for cash. Compute cost of goods sold and the cost of ending inventory using FIFO. If required, round your answers to the nearest cent.

Answer 1

COGS= $568

Ending inventory= $59

Step-by-step explanation:

Giving the following information:

Beginning inventory: 10 units $8.00

Purchase 1, Dec. 2: 22 $8.80

Purchase 2, Dec. 5: 26 $9.05

Sale 1, Dec. 7: 19 units

Sale 2, Dec. 10: 25 units

Purchase 3, Dec. 12: 12 $9.80

Sale 3, Dec. 14: 20 units

Total units= 10 + 22 + 26 + 12= 70 units

Units sold= 19 + 25 + 20= 64 units

Ending Inventory= 6

COGS= 10*8 + 22*8.8 + 26*9.05 + 6*9.8= $567.7= $568

Ending inventory= 6*9.8= $58.8= $59