FIFO-Example FIFO Computations- Perpetual Inventory System Purchases Balance Date Units Cost Total Units Cost Total Units Cost Total 10 90$900 10 0s900 10$90|$900 8/3 15$100|$1,500 15$100s1,500 $2,400 8/14 10s90S900 00$1,000 5s100$500 Under FifO, units are assumed to be sold in the order acquired. Therefore of the 20 units sold on August 14, the first 10 units come from beginning inventory. Therefore, those 10 units are removed from the inventory record based on the cost of those units of s90 Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 16
16 FIFO-Example Purchases Sales Balance Date Units Cost Total Units Cost Total Units Cost Total 8/1 10 $ 90 $ 900 10 $ 90 $ 900 10 $ 90 $ 900 8/3 15 $ 100 $ 1,500 15 $ 100 $ 1,500 25 $ 2,400 8/14 10 $ 90 $ 900 10 $ 100 $ 1,000 5 $ 100 $ 500 5 $ 100 $ 500 8/17 20 $ 110 $ 2,200 20 $ 110 $ 2,200 25 $ 2,700 8/28 5 $ 100 $ 500 9 $ 110 $ 990 11 $ 110 $ 1,210 Totals 45 $ 4,600 34 $ 3,390 11 $ 1,210 FIFO Computations - Perpetual Inventory System Under FIFO, units are assumed to be sold in the order acquired. Therefore, of the 20 units sold on August 14, the first 10 units come from beginning inventory. Therefore, those 10 units are removed from the inventory record based on the cost of those units of $90
FIFO-Example FIFO Computations- Perpetual Inventory System Purchases Balance Date Units Cost Total Units Cost Total Units Cost Total 10 90$900 10 0s900 10|s90$900 8/3 15$100|$1,500 15|$100s1,500 $2,400 8/14 10s90900 10$100$1,00 5s100$500 5$100s500 The remaining 10 units sold on august 14th come from the next purchase, made on August 3 rd. Therefore, these units are removed from the inventory record based on their cost of S100. Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 17
17 FIFO-Example Purchases Sales Balance Date Units Cost Total Units Cost Total Units Cost Total 8/1 10 $ 90 $ 900 10 $ 90 $ 900 10 $ 90 $ 900 8/3 15 $ 100 $ 1,500 15 $ 100 $ 1,500 25 $ 2,400 8/14 10 $ 90 $ 900 10 $ 100 $ 1,000 5 $ 100 $ 500 5 $ 100 $ 500 8/17 20 $ 110 $ 2,200 20 $ 110 $ 2,200 25 $ 2,700 8/28 5 $ 100 $ 500 9 $ 110 $ 990 11 $ 110 $ 1,210 Totals 45 $ 4,600 34 $ 3,390 11 $ 1,210 FIFO Computations - Perpetual Inventory System The remaining 10 units sold on August 14th come from the next purchase, made on August 3rd. Therefore, these units are removed from the inventory record based on their cost of $100