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Homework answers / question archive / Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the FIFO inventory costing method
Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the FIFO inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological? order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual?record, calculate the quantity and total cost of merchandise inventory? purchased, sold, and on hand at the end of the period. . Aug 1 Beginning Merchandise Inventory 12 books @ $14 each; Aug 3 : Sold 4 books @ $18 each; Aug 12 Purchased 8 books @20 each; Aug 15 sold 9 books @$18 each; Aug 20 Purchased 5 books @ $29; Aug 28 Sold 6 books @ $20 each (Purchases, Cost of Goods, Inventory on Hand)
| Inventory management (Fifo Method) | |||||||||||||||
| Opening Inventory | Purchases | Sales | Clsoing | ||||||||||||
| Date | Quantity | Rate | Amount | Date | Quantity | Rates | Amount | Date | Quantity | Rates | Amount | Date | Quantity | Rate | Amount |
| Aug-01 | 12 | 14 | 168 | Aug-01 | 12 | 14 | 168 | ||||||||
| Aug-03 | 4 | 18 | 72 | Aug-03 | 8 | 14 | 112 | ||||||||
| Aug-12 | 8 | 20 | 160 | Aug-12 | 8 | 14 | 112 | ||||||||
| Aug-12 | 8 | 20 | 160 | ||||||||||||
| Aug-15 | 9 | 18 | 162 | Aug-15 | 7 | 20 | 140 | ||||||||
| Aug-20 | 5 | 29 | 145 | Aug-20 | 7 | 20 | 140 | ||||||||
| Aug-20 | 5 | 29 | 145 | ||||||||||||
| Aug-28 | 6 | 20 | 120 | Aug-20 | 1 | 20 | 20 | ||||||||
| Aug-20 | 5 | 29 | 145 |
| Summary | Amount |
| Purchase | 305 |
| Sales | 354 |
| Closing Stock | 165 |
| COGS | 308 |
