using the fifo method, calculate the cost of ending inventory and cost of goods sold for sandy corporation…

using the fifo method, calculate the cost of ending inventory and cost of goods sold for sandy corporation. view the data. cost of ending inventory = data quantity unit cost total beginning inventory 90 $ 4.00 $ 360 purchases 180 $ 7.00 $ 1,260 goods available for sale 270 ending inventory 80 cost of goods sold 190

using the fifo method, calculate the cost of ending inventory and cost of goods sold for sandy corporation. view the data. cost of ending inventory = data quantity unit cost total beginning inventory 90 $ 4.00 $ 360 purchases 180 $ 7.00 $ 1,260 goods available for sale 270 ending inventory 80 cost of goods sold 190

Answer

Explanation:

Step1: Determine units from latest purchases in ending inventory

Since we use FIFO (First - In, First - Out), the ending inventory of 80 units comes from the latest purchases.

Step2: Calculate cost of ending inventory

The unit cost of the latest purchases is $7.00. So the cost of ending inventory = 80×$7.00 = $560.

Step3: Calculate cost of goods sold

Cost of goods available for sale = $360 + $1260=$1620. Cost of goods sold = Cost of goods available for sale - Cost of ending inventory. So cost of goods sold = $1620 - $560 = $1060.

Answer:

Cost of ending inventory = $560 Cost of goods sold = $1060