Brief Exercise 6-5 Calculate ending inventory and cost of goodssold using FIFO (LO6-3)During the...Brief...

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Accounting

Brief Exercise 6-5 Calculate ending inventory and cost of goodssold using FIFO (LO6-3)
During the year, Wright Company sells 440 remote-controlairplanes for $110 each. The company has the following inventorypurchase transactions for the year.
  Date   Transaction Number
of Units Unit Cost Total Cost
  Jan. 1   Beginning inventory 60        $76    $ 4,560
  May 5   Purchase 220        79    17,380
  Nov. 3   Purchase 170        84    14,280
450        $ 36,220

Calculate ending inventory and cost of goods sold for the year,assuming the company uses FIFO.

Answer & Explanation Solved by verified expert

3.9 Ratings (498 Votes)

Calculations as per FIFO
Ending Inventory = $ 840
Cost of Goods Sold = $ 35,380
Working for above answer

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	60	$ 76.00	$ 4,560.00	60	$ 76.00	$ 4,560.00	0	$ 76.00	$ -
Purchases:
05-May	220	$ 79.00	$ 17,380.00	220	$ 79.00	$ 17,380.00	0	$ 79.00	$ -
03-Nov	170	$ 84.00	$ 14,280.00	160	$ 84.00	$ 13,440.00	10	$ 84.00	$ 840.00
TOTAL	450		$ 36,220.00	440		$ 35,380.00 = Answer	10		$ 840.00 = Answer

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In: AccountingBrief Exercise 6-5 Calculate ending inventory and cost of goodssold using FIFO (LO6-3)During the...Brief Exercise 6-5 Calculate ending inventory and cost of goodssold using FIFO (LO6-3)During the year, Wright Company sells 440 remote-controlairplanes for $110 each. The company has the following inventorypurchase transactions for the year. Date TransactionNumberof UnitsUnit CostTotal Cost Jan. 1 Beginning inventory60 $76 $4,560 May 5 Purchase220 79 17,380 Nov. 3 Purchase170 84 14,280450 $36,220 Calculate ending inventory and cost of goods sold for the year,assuming the company uses FIFO.

Date	Transaction	Number of Units	Unit Cost	Total Cost
Jan. 1	Beginning inventory	60	$76	$	4,560
May 5	Purchase	220	79		17,380
Nov. 3	Purchase	170	84		14,280

		450		$	36,220