Determine the cost of merchandise sold for the transaction on September 25 using the perpetual inventory system and the FIFO method. Date Item Units Cost Total Beginning inventory 5 $5 $25 September 4 Purchase 8 6 48 September 8 Sale 6 September 20 Purchase 15 7 105 September 25 Sale 12 a.$105 b.$77 c.$84 d.$73

Question

Harry Ponce

Business

29 May, 01:24

Determine the cost of merchandise sold for the transaction on September 25 using the perpetual inventory system and the FIFO method. Date Item Units Cost Total Beginning inventory 5 $5 $25 September 4 Purchase 8 6 48 September 8 Sale 6 September 20 Purchase 15 7 105 September 25 Sale 12 a.$105 b.$77 c.$84 d.$73

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Answers (1)

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Milton Woods · Answer 1

b.$77

Explanation:

beginning inventory 5 units

purchase september 4th 8 untis

sale for 6 units:

inventory after first sale: (available at second sale)

beginning used.

purchase september 4th 7 untis at $6

September 25th Sale of 12 units

inventory used for second sale:

September 4th 7 untis at $6

September 15th 5 units at $7

total COGS for the sale: $77