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Question & Answer: Long Company had the following inventory information for the year ending December 31: On De…..

Long Company had the following inventory information for the year ending December 31 Units 40 20 30 40 130 Total $ 80 180 300 480 $1,040 Unit Cost Beginning Inventory S2 Purchases: March 3 June 15 10 September 28 12 Cost of Goods Available for Sale On December 31, Long Company had an ending inventory of 70 units. They use a periodic inventory system to compute the cost of ending inventory Required Using FIFO (a) Compute the cost of ending inventory (b) Compute the cost of goods sold Cost of ending inventory: Cost of goods sold Clear Undo Help

Long Company had the following inventory information for the year ending December 31: On December 31, Long Company had an ending inventory of 70 units. They use a periodic inventory system to compute the cost of ending inventory. Required: Using FIFO: (a) Compute the cost of ending inventory (b) Compute the cost of goods sold Cost of ending inventory: $ Cost of goods sold: $

Expert Answer

 

Purchase
Date Particulars Quantity Rate Amount
Opening 40 2 80
3-Mar Purchases 20 9 180
15-Jun Purchases 30 10 300
28-Sep Purchases 40 12 480
Total 130 33 1040
Cost of ending Inventory
FIFO 70 Units
40 units of 28-Sep + 30 Units of 15-June
40 * 12 + 30 * 10
$ 780
Cost of Goods Sold
40 Units of Opening + 20 Units of 3-Mar
40 * 2 + 20 * 9
$ 260
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