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COGS and Ending Inventory

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The A Company had the following beginning inventory, purchases, and sales of inventory during the first quarter of 2006:
Units Cost Per Unit
January 1 Beginning Balance 1,200 $15
15 Purchased 500 $16
25 Sold 700
February 5 Purchased 600 $17
18 Sold 800
March 15 Purchased 600 $16

Determine the value of the company's cost of goods sold and ending inventory at the end of March, assuming a perpetual inventory method and FIFO cost flow.

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Solution Summary

This solution explains how to calculate the COGS and Ending Inventory under the perpetual FIFO inventory system.

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Under the FIFO cost flow, goods purchased first are assumed to be sold first.
For cost of goods ...

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