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Hess Company's inventory records show the following data for the month of September: Units Unit Cost Inventory, September 1 100 $3.00 Purchases: September 8 450 3.50 September 18 300 3.70 A physical inventory on September 30 shows 150 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodic inventory system. Ending inventory $ Cost of goods sold $ ___________.

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hyderali230

Answer:

Ending Inventory = $555

Cost of Goods Sold = $2,430

Explanation:

                                   Date             Units   Unit Cost  Closing Inventory

Opening Balance   September 1      100      $3.00       $300.00

Purchases

                                September 8     450     $3.50       $1,575.00

                                September 18    300     $3.70       $1,110.00

Ending Inventory   September 30   150      $3.70       $555.00

According to FIFO the the material first purchased will be sold first. So, the closing Inventory of 150 units will be valued at the rate of last purchase of 300 units @ $3.77/unit.

Cost of Goods Sold = $300 + $1575 + (( 300 - 150 ) x 3.70) = $2,430

The ending inventory and the cost of goods sold is $555 and $2,430.

Calculation of the ending inventory and the cost of goods sold:

Here the ending inventory should be

= 150 * $3.70

= $555

And, the cost of goods sold is

= (100*3)+(450*3.50)+(150*3.70)

= 2430

Hence, The ending inventory and the cost of goods sold is $555 and $2,430.

learn more about inventory here: https://brainly.com/question/22654785

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