A Company started business on January 1, 20X1, and had the following activity in the purchases journal
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A Company started business on January 1, 20X1, and had the following activity in the purchases journal and sales journal. As this is the first year of the company's operations, the beginning inventory balance is zero.
Purchases journal
Date | Cost | Quantity | Total |
January 1 | $ 4,000 | 70 | $ 280,000 |
February 28 | $ 4,120 | 133 | $ 547,960 |
May 31 | $ 4,200 | 112 | $ 470,400 |
July 31 | $ 4,240 | 97 | $ 411,280 |
October 31 | $ 4,320 | 98 | $ 423,360 |
December 31 | $ 4,400 | 18 | $ 79,200 |
Totals | 528 | $ 2,212,200 |
Sales journal
Date | Sales price | Quantity | Total |
January 31 | $ 5,000 | 49 | $245,000 |
March 31 | $ 5,000 | 92 | $460,000 |
April 30 | $ 5,000 | 32 | $160,000 |
June 30 | $ 5,000 | 70 | $350,000 |
August 30 | $ 5,000 | 101 | $505,000 |
November 30 | $ 5,000 | 80 | $400,000 |
December 15 | $ 5,000 | 34 | $170,000 |
Totals | 458 | $ 2,290,000 |
What is the inventory balance using FIFO?
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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