Campbell's Clothing Store sells jeans. During January 2011, its inventory records for one brand of designer jeans were as follows:

See information for Campbell's Clothing Store above. Using this information, periodic FIFO cost of goods sold is

Question

Campbell's Clothing Store sells jeans. During January 2011, its inventory records for one brand of designer jeans were as follows:

See information for Campbell's Clothing Store above. Using this information, periodic FIFO cost of goods sold is

Quizplus · Accepted Answer

Using periodic FIFO, the cost of goods sold for January would be calculated as follows:
- Beginning inventory (5 units @ $50) = $250
- Sales on January 10 (3 units @ $60) = $180
- Purchase on January 15 (2 units @ $55) = $110
- Cost of goods available for sale = $540
- Ending inventory (4 units @ $55) = $220
- Cost of goods sold = Cost of goods available for sale - ending inventory = $540 - $220 = $320
Therefore, the periodic FIFO cost of goods sold for January is $330 ($250 + $180 = $430, but $110 of that is from a purchase made in January and should be included in ending inventory).

Campbell's Clothing Store Sells Jeans