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Oriole Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 270 $30 $ 8,100 April 15 purchase 440 36 15,840 April 23 purchase 290 39 11,310 1,000 $35,250 Compute the April 30 inventory and the April cost of goods sold using the FIFO method. Ending inventory $enter a dollar amount Cost of goods sold $enter a dollar amount

Respuesta :

Answer:

. Ending inventory = $15,270

cost of goods sold = $19,980

Explanation:

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

the cost of goods sold would be determined using the prices of inventories on April 1 and 15

cost of goods sold

270 x $30 = $8100

        +

(600 - 270) x $36 = $11,880

cost of goods sold = $19,980

ending inventory would consist of the inventory not sold on April 15 and the inventory bought on April 23

inventory not sold on April 15 = 440 - (600 - 270) = 110

110 x 36 = $3960

    +

290 x 39 = 11,310

total = $15,270

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