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Please calculate ending inventory, cost of goods sold, and gross profit under FIFO.
Company A owned 100 bags of soil at $8 per bag. Later that year, it purchased 500 bags at $8.30 each and 400 bags at $8.50 each. During the year it sold 880 bags at $12 each.

Submitted: 1342 days and 10 hours ago.

Category: Finance

Value: $3

Status: AWAITING CUSTOMER ACTION

Answer

What you need to do is to set up a list to calculate each receipt of inventory.

                    100 bags @ $8.00 $ 800.00
                    500 bags @ $8.30 4,150.00
                    400 bags @ $8.50 3,400.00

Available for Sale 1,000             $8,350.00

Cost of Goods Sold 100 bags @ $ 800.00
                   500 bags @ 4,150.00
                   280 bags @ 2,380.00

Total Cost of Goods Sold      $7,330.00

Gross Profit
     Sales              880 x 12.00   $10,560.00
     Cost of Goods Sold                 7,330.00
     Gross Profit                     $ 3,230.00

Ending Inventory
     120 bags @ $8.50     $1,020.00

Accepts:
Expert:	Wayne Brasch
Pos. Feedback:	100.0 %
Answered:	3/22/2006

Accountant and Business C&onsultant

Master of Science in Taxation. Tax experience since 1963.

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Please calculate ending inventory, cost of goods sold, and gross profit under FIFO. Company A owned 100 bags of soil at $8 per bag. Later that year, it purchased 500 bags at $8.30 each and 400 bags at $8.50 each. During the year it sold 880 bags at $12 each.

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Related Finance Questions

Please calculate ending inventory, cost of goods sold, and gross profit under FIFO.
Company A owned 100 bags of soil at $8 per bag. Later that year, it purchased 500 bags at $8.30 each and 400 bags at $8.50 each. During the year it sold 880 bags at $12 each.