In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 150 units at $5 on January 1, (2) 460 units at $6 on January 8, and (3) 760 units at $8 on January 29. Assume 915 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under FIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.)

Question

Kaylen Black

Business

9 March, 03:59

In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 150 units at $5 on January 1, (2) 460 units at $6 on January 8, and (3) 760 units at $8 on January 29. Assume 915 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under FIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.)

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Answers (1)

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Angeline Hudson · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

(1) 150 units at $5 on January 1,

(2) 460 units at $6 on January 8, and

(3) 760 units at $8 on January 29.

Assume 915 units are on hand at the end of the month.

Cost of goods available for sale = 150*5 + 460*6 + 760*8 = $9,590

Ending inventory = 760*8 + 155*6 = $7,010

Cost of goods sold = 150*5 + 305*6 = $2,580