Beginning inventory, purchases, and sales for Item Widget are as follows: Mar. 1 Inventory 200 units at $8 9 Sale 175 units 13 Purchase 160 units at $9 25 Sale 150 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on March 25 and (b) the inventory on March 31. a. Cost of merchandise sold on March 25 $ 1,325 b. Inventory on March 31

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Business

Rylie

15 March, 22:39

Beginning inventory, purchases, and sales for Item Widget are as follows: Mar. 1 Inventory 200 units at $8 9 Sale 175 units 13 Purchase 160 units at $9 25 Sale 150 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on March 25 and (b) the inventory on March 31. a. Cost of merchandise sold on March 25 $ 1,325 b. Inventory on March 31

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Giuliana Delacruz · Answer 1

Instructions are listed below

Explanation:

Giving the following information:

Mar. 1 Inventory 200 units at $8

Mar. 9 Sale 175 units

Mar. 13 Purchase 160 units at $9

Mar. 25 Sale 150 units

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method

Cost of goods sold = 25 units*$8 + 125units*9 = $1325

Ending inventory = 35units * 9 = $315