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Accounting Help finding ending inventory?
Okay so I've been working on this problem for a while now, and I have no idea what I'm doing wrong as to finding the answer! Somebody please help me with a stepbystep on finding the ending inventory and the cost of goods sold. Please!
During 2012, Wright Company sells 303 remote control airplanes for $106 each. The company has the following inventory purchase transactions for 2012.
Date Transaction Number
of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 58 $63 $ 3,654
May 5 Purchase 202 67 13,534
Nov. 3 Purchase 109 81 8,829
Total 369 $ 26,017
Calculate ending inventory and cost of goods sold for 2012 assuming the company uses FIFO.
1 Answer
- 9 years agoFavorite Answer
FIFO means First-In-First-Out. By my calculations, your COGS would be:
58 beginning inventory sold first that cost $63 each = $3654
202 next purchase sold next that cost $67 each = $13,534
303-202-58=43 of the final purchase sold that cost $81 each = $3,483
Total COGS for all 303 sold = $20,671
Your ending inventory would be the remaining items from the final order not sold: 109-43 = 66 at $81 each = $5,346 ending inventory.
Hope this helps!
Source(s): College.
