ual Inventory Using FIFO

ing inventory, purchases, and sales for Item Zeta$9$ are as follows:

Oct. $1$ Inventory

$71$ units $$25$

$7$ Sale

$46$ units

$15$ Purchase

$57$ units @ $$29$

$24$ Sale $30$ units

hing a perpetual inventory system and using the first$-$in$,$ first$-$out $($FIFO$)$ method, determine $($a$)$ the cost of the goods sold on October $24$

the inventory value on October $31.$

st of the goods sold on October $24$

entory value on October $31$

Geedback

Check My Work

a$.$ When the FIFO method is used, costs are included in cost of goods sold in the order in which they were purchased. Think of your inventory in terms of "layers". Determine how much inventory remains from each layer after each sale.

b$.$ The ending inventory is made up of the most recent purchases.

Previous

Next