A company had a beginning inventory of 10 units at a cost of $13 each on March 1. On March 2, it...
Question:
A company had a beginning inventory of 10 units at a cost of $13 each on March 1. On March 2, it purchased 10 units at $20 each. On March 6, it purchased 6 units at $18 each. On March 8, it sold 22 units for $61 each.
Using the FIFO perpetual inventory method, what was the cost of the 22 units sold?
First in First Out:
First in First Out method assumes that the goods that are purchased or produced first will be sold first. The purpose of using this method to evaluate inventory is to calculate the cost of goods.
Answer and Explanation:
Become a Study.com member to unlock this answer! Create your account
View this answerSee full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
from
Chapter 6 / Lesson 11
35K
Inventory valuation methods are ways that companies place a monetary value on the items they have in their inventory. Discover different inventory valuation methods, including specific identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and weighted average.
Related to this Question
- A company had a beginning inventory of 12 units at a cost of $21 each on March 1. On March 2, it purchased 12 units at $36 each. On March 6 it purchased 7 units at $26 each. On March 8, it sold 28 units for $69 each. Using the FIFO perpetual inventory met
- A company had a beginning inventory of 12 units at a cost of $24 each on March 1. On March 2, it purchased 12 units at $42 each. On March 6, it purchased 7 units at $29 each. On March 8, it sold 28 units for $72 each. Using the FIFO perpetual inventory m
- A company had beginning inventory of 11 units at a cost of $23 each on March 1. On March 2, it purchased 50 units at $28 each. On March 8 it sold 25 units for $71 each. Using the FIFO perpetual inventory method, what was the cost at 25 units sold?
- A company had beginning inventory of 14 units at a cost of $8 each on March 1. On March 2, it purchased 10 units at $10 each. On March 6, it purchased 8 units at $14 each. On March 8, it sold 26 units for $56 each. Using the FIFO perpetual inventory metho
- A company had beginning inventory of 11 units at a cost of $26 each on March 1. On March 2, it purchased 11 units at $46 each. On March 6, it purchased 5 units at $31 each. On March 8, it sold 25 units for $74 each. Using the FIFO perpetual inventory meth
- A company reports the following beginning inventory and purchases and ends the period with 30 units in inventory. Compute ending inventory using perpetual FIFO. Beginning inventory 100 units at $10 cost per unit Purchase 1 40 units at $12 cost per unit Pu
- A company has beginning inventory of 14 units at a cost of $12.00 each on October 1. On October 5, it purchases 13 units at $13.00 per unit. On October 12, it purchases 23 units at $14.00 per unit. On October 15, it sells 39 units. Using the FIFO periodic
- A company has beginning inventory of 12 units at a cost of $15 each on February 1. On February 3, it purchases 25 units at $17 each. On February 5, 20 units are sold. Using the FIFO periodic inventory method, what is the cost of the 20 units that are sold
- Perpetual inventory system. March 9 - Sales of 80 units from beginning inventory and 340 units from March 5 Purchase ; March 29 - Sales of 40 units from March 18 purchase and 120 units from March 25
- A company has a beginning inventory of 14 units at a cost of $26 each on February 1. On February 3, it purchases 36 units at $28 each. On February 5, 17 units are sold. Using the FIFO periodic inventory method, what is the cost of the 17 units that are so
- 12. A company has beginning inventory of 16 units at a cost of $24 each on February 1. On February 3, it purchases 34 units at $26 each. 22 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 22 units that
- A company has beginning inventory of 16 units at a cost of $33 each on February 1. On February 3, it purchases 48 units at $35 each. Suppose 24 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 24 units that a
- A company has beginning inventory of 12 units at a cost of $26 each on February 1. On February 3, it purchases 36 units at $31 each. Suppose 18 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 18 units that a
- A company has beginning inventory of 12 units at a cost of $28 each on February 1. On February 3, it purchases 38 units at $30 each. 17 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 17 units that are sold?
- Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. 033 Mar. 1 Beginning inventory 150 units @ $52.89 per unit Mar. 5 Purchase 250 u
- A company has a beginning inventory of $60,000 and purchases during the year of $120,000. The beginning inventory consisted of 2,000 units and 8,000 units were purchased during the year. The company has 5,000 units left at year-end. Under average-cost, wh
- A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, it purchased 10 units at $13 per unit. On August 12 it purchased 20 units at $14 per unit. On August 15, it sold 30 units. Using the FIFO periodic inventory method, what i
- A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $28,000. Early in the year, 10,000 units were purchased at $9 each. Using FIFO, what is the value of the ending inventory of 3,000 units?
- A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $28,000. Early in the year, 10,000 units were purchased at $9 each. Using FIFO, what is the value of the ending inventory of 3,000 units? A. $36,000 B. $21,00
- A company has inventory of 25 units at a cost of $6 each on June 1. On June 3, it purchased 35 units at $11 each. 27 units are sold on June 5. Using the FIFO perpetual inventory method, what is the cost of the 27 units that were sold? \\ A. $675 B. $178
- A company has beginning inventory of 42 units at a cost of $13 each on October 1. On October 5, it purchases 32 units at $14 per unit. On October 12, it purchases 45 units at $15 per unit. On October 15, it sells 95 units. Using the FIFO periodic inventor
- A company had inventory on November 1 of 9 units at a cost of $13 each. On November 2, they purchased 14 units at $14 each. On November 6, they purchased 10 units at $16 each. On November 8, 12 units were sold for $25 each. Using the FIFO perpetual invent
- Beginning inventory, purchases, and sales for Item CZ83 are as follows: March 1 Inventory 90 units @ $24 5 Sale 72 units 11 Purchase 100 units @ $27 21 Sale 84 units Assuming a perpetual inventory sy
- A company had inventory on November 1 of 8 units at a cost of $18 each. On November 2, it purchased 10 units at $21 each. On November 6, it purchased 8 units at $25 each. On November 8, 12 units were sold for $55 each. Using the FIFO perpetual inventory m
- A company reports the following beginning inventory and purchases, and it ends the period with 30 units in inventory. Beginning inventory 100 units at $10 cost per unit Purchase 1 40 units at $12 cost per unit Purchase 2 20 units at $14 cost per u
- A firm has beginning inventory of 300 units at a cost of $11 each. Production during the period was 650 units at $12 each. If sales were 700 units, what is the cost of goods sold using a FIFO inventory method?
- Sunland Company uses a perpetual inventory system. Its beginning inventory consists of 83 units that cost $56 each. During June (1) the company purchased 248 units at $56 each on account, (2) returned 10 units for credit, and (3) sold 206 units at $83 eac
- A company has an inventory of 12 units at a cost of $12 each on October 1. On October 5, they purchased 6 units at $15 per unit. On October 12, they purchased 17 units at $16 per unit. On October 15, they sold 30 units. Using the FIFO periodic inventory m
- CCO Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. Date Activities Units Acquired at Cost Units Sold at Retail Apr. 1 Beginning inventory 15 units @ $ 3,000/unit Apr. 6 Purchase 35 un
- A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $16,000. Early in the year, 8,000 units were purchased at $6 each. Using LIFO, what is the value of the ending inventory of 2,000 units? A. $24,000 B. $8,000
- A company began an accounting period with 100 units of an item that cost $7.50 each. During the period it purchased 400 units of the item at $9 each and it sold 390 units. Give the costs assigned to the ending inventory and to goods sold under each of the
- Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item ER27 are as follows: January 1 Inventory 55 units @ $19 9 Sale 36 units 13 Purchase 57 units @ $21 28 Sale 25 units
- Your Corporation uses a FIFO perpetual inventory system. August 2 10 units were purchased at $12 per unit. August 18 15 units were purchased at $14 per unit. August 29 12 units were sold. What was th
- A company's inventory records report the following: August 1: Beginning balance 18 units @ $8 August 5: Purchase 13 units @ $7 August 12: Purchase 17 units @ $8 On August 15, it sold 36 units. Using the FIFO perpetual inventory method, what is
- A company's inventory records report the following: August 1 Beginning balance 15 units @ $12 August 5 Purchase 10 units @ $13 August 12 Purchase 20 units @ $14 On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the valu
- A company had inventory on November 1 of 8 units at a cost of $16 each. On November 2, it purchased 12 units at $22 each. On November 6, it purchased 6 units at $25 each. On November 8, 10 units were sold for $55 each. Using the LIFO perpetual inventory m
- A company had inventory on November 1 of 8 units at a cost of $18 each. On November 2, it purchased 10 units at $21 each. On November 6, it purchased 8 units at $25 each. On November 8, 12 units were sold for $55 each. Using the LIFO perpetual inventory m
- Beginning Inventory (1,000 units at $6.50) = 6,500 Dec 12. Assuming the perpetual method is used, the company sold 3,200 units at $18 each on account, terms 2/10, n/30. Calculate the cost of goods sold using the FIFO method and record the appropriate j
- A company has a beginning inventory balance of $120 units, which are 10 units at $12 each. Early in the month, they purchased 16 units at $10 per unit and sold 15 units. What is the cost of goods sold for the month using the perpetual inventory system and
- The Warnerwood Company uses a perpetual inventory system. It entered the following purchases and sales transactions for March into the system: Date Activities Units Acquired at Cost Cost per Unit Unit
- A company has beginning inventory of 42 units at a cost of $13.00 each on October 1. On October 5, it purchases 27 units at $14.00 per unit. On October 12 it purchases 37 units at $15.00 per unit. On
- The Rock Supply Co. uses the perpetual inventory procedure and the LIFO method of inventory costing. Following are inventory data for 2017. Purchases Sales January 10 600 units at $8 March 17 400 units March 15 800 units at $.7.60 October 5 1,300 units Ma
- Beginning inventory, purchases, and sales for Item Delta are as follows: Jul. 1 Inventory 50 units at $15 7 Sale 44 units 15 Purchase 90 units at $18 24 Sale 40 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, d
- A company began the accounting period with inventory of 3,000 units at $30 each. During the period, the company purchased an additional 5,000 units at $26 each and sold 4,600 units. Assume the company uses a periodic inventory system. What is the cost of
- A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6, they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the FIFO perpetual inventor
- A company has inventory of 17 units at a cost of $17 each on June 1. On June 3, it purchased 27 units at $19 each. 21 units are sold on June 5. Using the FIFO periodic inventory method, what is the co
- A company uses the perpetual inventory and the gross method. On March 1, it purchased $45,000 of inventory, terms 2/10, n/30. On March 3, such company returned goods that cost $4,500. On March 9, the company paid the supplier. On March 9, the company shou
- A company's inventory records report the following: August 1 Beginning balance 28 units at $18 August 5 Purchase 23 units at $17 August 12 Purchase 27 units at $18 On August 15, it sold 56 units. Using the FIFO perpetual inventory method, what is the valu
- Beginning inventory, purchases, and sales data for the month are as follows: Beginning inventory 10 units @ 42 First Purchase 15 units @ $44 Second Purchase 13 units @ $45 Sales 26 units Determine the total cost of ending inventory according to FIFO and L
- Larkspur Company uses a perpetual inventory system. Its beginning inventory consists of 110 units that cost $75 each. During June, (1) the company purchased 330 units at $75 each, (2) returned 13 unit
- A company had inventory on November 1 of 22 units at a cost of $26 each. On November 2, they purchased 27 units at $27 each. On November 6, they purchased 23 units at $28 each. On November 8, 25 units were sold for $38 each. Using the LIFO perpetual inven
- A company had inventory on November 1, of 5 units at a cost of $10 each. On November 2, they purchased 19 units at $12 each. On November 6, they purchased 15 units at $15 each. On November 8, 17 units were sold for $45 each. Using the LIFO perpetual inve
- A company had inventory on November 1, of 5 units at a cost of $15 each. On November 2, they purchased 14 units at $17 each. On November 6 they purchased 10 units at $20 each. On November 8, 12 units were sold for $50 each. Using the LIFO perpetual inven
- A company had inventory on November 1 of 21 units at a cost of $25 each. On November 2, they purchased 26 units at $26 each. On November 6, they purchased 22 units at $28 each. On November 8, 24 units were sold for $37 each. Using the LIFO perpetual inven
- What is the cost of goods sold using the perpetual LIFO cost method? January beginning inventory had 1250 units at $14 per unit. In February 2250 units were purchased at $21 per unit. Later in Febr
- A Company just starting a business made the following four inventory purchases in June: June 1 120 Units Purchased Cost $390 June 10 230 Units Purchased Cost $575 June 15 230 Units Purchased Cost $620 June 28 120 Units Purchased Cost $520 A physical count
- Beginning inventory, purchases, and sales for Item ProX2 are as follows: Jan. 1 Inventory 60 units at $100 9 Sale 35 units 13 Purchase 50 units at $110 25 Sale 48 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method,
- 1/5 bought 10 units at $11.00 each; 1/8 bought 15 units at $11.25 each; 1/15 sold 8 units for $16 each; 1/22 bought 10 units at $11.50 each and sold 12 units for $16.50 each. The ending inventory is $693.75. What inventory costing method is the company us
- Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail March 1 Beginning inventory 210 units @ $53.20 per unit March 5 Pu
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 201 purchases and sales transactions Jan. 1 Beginning inventory, Units Acquired at Cost: 600 units @ $45
- A company just starting in business purchased three merchandise inventory items at the following prices. First purchase = $80 Second purchase = $95 Third purchase = $85 If the company sold two units for a total of $240 and used FIFO costing, what would th
- A company's inventory records report the following: August 1 - Beginning balance - 29 units at $19 August 5 - Purchase - 24 units at $18 August 12 - Purchase - 28 units at $19 On August 15, it sold 58 units. Using the FIFO perpetual inventory method,
- A company just starting in business purchased three merchandise inventory items at the following prices. First purchase = $80 Second purchase = $95 Third purchase = $85 If the company sold two units for a total of $290 and used FIFO costing, the gross pro
- During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows: Units Cost per unit Beginning Inventory 100 $15 Jan. 5, Sales 50 Jan. 10, Purchases 70 $13 Jan. 15, Sale 25 Jan. 25, Sale 35 Require
- A company had an inventory of 8 units at a cost of $16 each on June 1. On June 2, they purchased 7 units at $17 each. On June 6 they purchased 7 units at $21 each. On June 8, they sold 18 units for $54 each. Using the LIFO perpetual inventory method, what
- Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. 3. Compute the cost assigned to ending inventory using a FIFO, b LIFO.
- The following data are available for one of the products sold by Green Company, which uses a perpetual inventory system. Oct. 1 : Beginning inventory, 800 units at $2 each. 5 : Purchased 2,000 units at $2.50 each. 10 : Sold 2,500 units at $5 each. 15 : P
- Grays Company has an inventory of 19 units at a cost of $7 each on August 1. On August 3, it purchased 29 units at $9 each, and 21 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported as the cost of goods sol
- Beginning inventory, purchases, and sales for WCS12 are as follows: Oct 1 Inventory 300 units at $8 13 Sale 175 units 22 Purchase 375 units at $10 29 Sale 280 units a. Assuming a perpetual inventory
- Your Corporation uses a LIFO perpetual inventory system. On August 2, 10 units were purchased at $12 per unit. August 18, 15 units were purchased at $14 per unit. On August 29, 12 units were sold. What was the balance in ending inventory after this sale?
- Given the following data, what is the cost of goods sold as determined under the FIFO method? Sales revenue 350 units at $35 per unit Beginning inventory 120 units at $15 per unit Purchases 400 units at $20 per unit
- A firm using the periodic system has a beginning inventory of 200 units at a cost of $8.76 each, purchases of 85 units at $8.80 each, purchases of 110 units at $8.98 each, and purchases of 75 units $9.00 each. If sales were 120 units, what is cost of good
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 680 units @ $40 per unit Feb. 10 Purch
- The beginning inventory of company X was 200 units at $45 per unit. During the year, they made two batch purchases. The first was a 300 unit purchase at $50 per unit; the second was a 350 unit purchase at $52 per unit. They sold 800 units. What is the am
- Beginning inventory 100 units at $60 Sale 75 Units at $112 First purchase 155 units at $65 Sale 135 units at $112 Second purchase 200 units at $72 Sale 175 units at $112 The firm uses the perpetual inventory system, and there are 70 units of the item o
- A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, they sold 18 units for $54 each. Using the LIFO perpetual inventor
- Beginning inventory, purchases, and sales for an inventory item are as follows: Beginning inventory 150 units @ $755 Sale 120 units First purchase 400 units @ $785 Sale 200 units Second purchase 300 units @ $805 Sale 290 units The firm uses the perpetual
- Use the following information. Units Cost per unit Beginning inventory 30 $62 Purchase 1 300 $63 Purchase 2 200 $64 The company sold 520 units. 1. Determine ending inventory using FIFO. 2. Determine ending inventory using LIFO.
- Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 210 units @ $53.20 per unit Mar. 5 Purc
- Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 200 units @ $53.00 per unit Mar. 5 Purc
- Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 210 units @ $53.20 per unit Mar. 5 Pur
- On March 1 you had 3 units of inventory at a cost of $5 each ($15). You made 2 purchases during the month. You purchased 12 units at $5.20 each ($62.40) on the 2nd and you purchased 16 items at $5.25
- Beginning inventory, purchases, and sales for the Item Widget are as follows: Mar. 1 Inventory 200 units at $8 9 Sale 175 units 13 Purchase 160 units at $9 25 Sales 150 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) m
- A company had inventory on November 1 of 5 units at a cost of $16 each. On November 2, they purchased 13 units at $18 each. On November 6 they purchased 9 units at $21 each. On November 8, 11 units were sold for $51 each. Using the LIFO perpetual inventor
- A company had inventory on November 1 of 5 units at a cost of $19 each. On November 2, they purchased 10 units at $21 each. On November 6 they purchased 6 units at $24 each. On November 8, 10 units were sold for $54 each. Using the LIFO perpetual inventor
- A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the LIFO perpetual inventor
- The Divine Merchandising Corporation began March operations with a merchandise inventory of 6 units, each of which cost $27. During March, Divine Merchandising made the following purchases: (1) March 4, 12 units @ $28 per unit, (2) March 15, 18 units @ $3
- The Divine Merchandising Corporation began March operations with merchandise inventory of 6 units, each of which cost $27. During March, Divine Merchandising made the following purchases: (1) March 4, 12 units @ $28 per unit, (2) March 15, 18 units @ $30
- The Divine Merchandising Corporation began March operations with merchandise inventory of 6 units, each of which cost $27. During March, Divine Merchandising made the following purchases: (1) March 4, 12 units @ $28 per unit, (2) March 15, 18 units @
- Beginning Inventory 160 units at $110 First Purchase 400 units at $120 Second Purchase 480 units at $130 Third Purchase 240 units at $140 The value of ending inventory using FIFO is:
Explore our homework questions and answers library
Browse
by subject