lo 2 turner company had the following activity in its inventory account during march 2024:\n| date |…

lo 2 turner company had the following activity in its inventory account during march 2024:\n| date | activity | units | cost per unit | total unit costs |\n|--|--|--|--|--|\n| march 1 | beginning inventory | 100 | $4.00 | $400.00 |\n| march 3 | purchase 1 | 45 | 5.00 | 225.00 |\n| march 5 | sale 1 | 50 | 9.00 | 450.00 |\n| march 9 | purchase 2 | 60 | 5.50 | 330.00 |\n| march 12 | sale 2 | 70 | 10.00 | 700.00 |\n| march 14 | purchase 3 | 10 | 6.00 | 60.00 |\n| march 15 | sale 3 | 30 | 12.00 | 360.00 |\n| march 30 | purchase 4 | 35 | 7.00 | 245.00 |\nbased on this information, what is the cost of goods sold for the month ended march 31, 2024, for turner company if the company uses perpetual fifo as its inventory valuation method?

lo 2 turner company had the following activity in its inventory account during march 2024:\n| date | activity | units | cost per unit | total unit costs |\n|--|--|--|--|--|\n| march 1 | beginning inventory | 100 | $4.00 | $400.00 |\n| march 3 | purchase 1 | 45 | 5.00 | 225.00 |\n| march 5 | sale 1 | 50 | 9.00 | 450.00 |\n| march 9 | purchase 2 | 60 | 5.50 | 330.00 |\n| march 12 | sale 2 | 70 | 10.00 | 700.00 |\n| march 14 | purchase 3 | 10 | 6.00 | 60.00 |\n| march 15 | sale 3 | 30 | 12.00 | 360.00 |\n| march 30 | purchase 4 | 35 | 7.00 | 245.00 |\nbased on this information, what is the cost of goods sold for the month ended march 31, 2024, for turner company if the company uses perpetual fifo as its inventory valuation method?

Answer

Explanation:

Step1: Analyze Sale 1

For the sale of 50 units on March 5, using FIFO, these units come from the beginning - inventory. Cost of goods sold for Sale 1 is $50\times4 = 200$.

Step2: Analyze Sale 2

For the sale of 70 units on March 12, 50 units come from the remaining beginning - inventory ($100 - 50=50$) and 20 units come from Purchase 1. Cost of goods sold for Sale 2 is $(50\times4)+(20\times5)=200 + 100=300$.

Step3: Analyze Sale 3

For the sale of 30 units on March 15, 25 units come from the remaining Purchase 1 ($45 - 20 = 25$) and 5 units come from Purchase 2. Cost of goods sold for Sale 3 is $(25\times5)+(5\times5.5)=125+27.5 = 152.5$.

Step4: Calculate total cost of goods sold

Total cost of goods sold = $200+300 + 152.5=652.5$.

Answer:

$652.50$