Inventory Costing: FIFOFilimonov Inc. has the following information related to purchases and sales of one of its inventory items:Assume that the company uses a perpetual inventory system.DateDescriptionUnits Purchased at CostUnits Sold at RetailJune 1Beginning Inventory200 units @ $10 = $2,000 9Purchase 1300 units @ $12 = $3,600 14Sale 1 400 units @ $2522Purchase 2250 units @ $14 = $3,500 29Sale 2 225 units @ $25 Required:Calculate the cost of goods sold and the cost of ending inventory using the FIFO inventory costing method.Cost of goods sold Cost of ending inventory

Name: Inventory Costing: FIFOFilimonov Inc. has the following information re
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Description: Inventory Costing: FIFOFilimonov Inc. has the following information related to purchases and sales of one of its inventory items:Assume that the company uses a perpetual inventory system.DateDescriptionUnits Purchased at CostUnits Sold at RetailJune

Answered: Inventory Costing: FIFO Filimonov Inc.…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 67APSA: Inventory Costing Methods Andersons Department Store has the following data for inventory,...

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Inventory Costing: FIFO

Filimonov Inc. has the following information related to purchases and sales of one of its inventory items:

Assume that the company uses a perpetual inventory system.

Date	Description	Units Purchased at Cost	Units Sold at Retail
June 1	Beginning Inventory	200 units @ $10 = $2,000
9	Purchase 1	300 units @ $12 = $3,600
14	Sale 1		400 units @ $25
22	Purchase 2	250 units @ $14 = $3,500
29	Sale 2		225 units @ $25

Required:

Calculate the cost of goods sold and the cost of ending inventory using the FIFO inventory costing method.

Cost of goods sold
Cost of ending inventory

Expert Solution

Step 1

Meaning of FIFO Method : -

FIFO stands for “First-In, First-Out”. It is a method used for cost flow assumption purposes in the cost of goods sold calculation. The FIFO method assumes that the oldest products in a company’s inventory have been sold first. The costs paid for those oldest products are the ones used in the calculation.

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