Can you figure out this accounting FIFO Inventory Question?
Asked by dantesj46
A company buys the following inventory for resale one month apart: one apple ($1) two apples ($2 each) three apples ($3 each) four apples ($4 each) During the course of business, this company sold the apples as follow: two apples three apples three additional apples Based on the above information, calculate the ending inventory of apples and the cost of goods sold (dollar value) under the First in First out method (FIFO).

Best Answer:
1 1 (stock) $1 2 3 (stock) $5 3 6 (stock) $14 4 10 (stock) $30 2 (sale) $3 $27 3 (sale) 8 $19 3 (sale) $11 $8

Hi, Under FIFO Method apples are sold as under: two apples: 1$+2$ = 3$ three apples: 2$+3$+3$ = 8$ three additional apples: 3$+4$+4$ = 11$ Ending Inventory is 2 Apples of 4$ each & cost of goods sold is 22$. Hope this answers. Cheers..Wireless..:)
Answered by WirelessRouter

No-one can answer this question because you don't say which apples were sold. The apples that were sold need to be identified by the price paid for them. I get good business tips and general knowledge from the website below.
Answered by Des

FIFO is first in-first out...therefore..... First sale..two apples--one at 1$ one at $2 ($3) Second sale...three apples, two at $2 one at $3 ($5) Third sale...two at $3, one at $4 ($6) you have three left at $4 each for a total of $12
Answered by Õfficial Census Fakeя