Accounting Problem

Ch6.Lab.xlsx

Sheet1

Perpetual inventory using FIFO
The following units of a particular item were available for sale during the calendar year:
DATA
		Quantity	Price
Jan. 1	Inventory	3,800	$42
Apr. 19	Sale	2,400
30-Jun	Purchase	4,300	$46
Sept. 2	Sale	5,200
Nov. 15	Purchase	2,000	$49
REQUIRED:
The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
Using formulas and cell references from the problem data, perform the required analysis. Formulas entered in the green cells show in the orange cells. Transfer amounts to CNOWv2
for grading.
Schedule of Cost of Goods Sold
FIFO Method
	Purchases			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan. 1
Apr. 19
30-Jun
Sept. 2
Nov. 15
Dec. 31	Balances
Formulas
	Purchases			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan. 1
Apr. 19
30-Jun

Sept. 2

Nov. 15

Dec. 31	Balances