A company purchased merchandise to be resold, By using the FIFO method answer the questions (1-4) Description Units Cost per unit Total cost Beginning inventory 25 14 $ 350 $ Purcbase 15 15$ 225$ Purchase 28 10 $ 280 S 1- The total units equal

Accounting Dec 03, 2020

A company purchased merchandise to be resold, By using the FIFO method answer the questions (1-4) Description Units Cost per unit Total cost Beginning inventory 25 14 $ 350 $ Purcbase 15 15$ 225$ Purchase 28 10 $ 280 S 1- The total units equal .68... 2-the cost of goods available for sale equal......855 S.... 3- The cost of goods sold of (50 units ) equal....... 4- the Ending inventory cost of ( 28 units) equal.

Expert Solution

Description	Units	Cost per unit($)	Total cost($)
Beginning Inventory	25	14	350
Purchase	15	15	225
Purchase	28	10	280
Total	68		855

1. Total units = 68

2.Cost of goods sold vailable for sale = $855

3. The cost of goods sold of 50 units :

(25 × $14) + (15 × $15) + (10 × $10) = $675

The ending inventory of 18 units :

18 × $10 =$180

Cost of goods sold of 40 units :

(25 × $14) + (15 × 15) = $575

4. The ending inventory of 28 units :

28 × $10= $280

All the calculations are done keeping in mind the FIFO method.

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