Berring Sales uses FIFO. The partially completed inventory record for January appears below. On January 14, the company sold 10 units. On January 29, the company sold 50 units. Complete the inventory record through the January 14 sale and calculate the inventory balance after the sale on January 14. (Please round to the nearest whole dollar.)

Question

Berring Sales uses FIFO. The partially completed inventory record for January appears below.  On January 14, the company sold 10 units. On January 29, the company sold 50 units. Complete the inventory record through the January 14 sale and calculate the inventory balance after the sale on January 14. (Please round to the nearest whole dollar.)

Quizplus · Accepted Answer

To complete the inventory record, we need to calculate the cost of goods sold (COGS) for each sale and adjust the inventory balance accordingly.

First, let's calculate the COGS for the January 14 sale of 10 units:

COGS = 10 units x $20 = $200

We can then adjust the inventory balance to reflect this sale:

Beginning inventory balance = 20 units x $20 = $400 
- Sold 10 units x $20 = $200 
= Ending inventory balance after January 14 sale = $200

Now, let's calculate the COGS for the January 29 sale of 50 units:

COGS = 30 units x $20 + 20 units x $22 = $1,000

We can then adjust the inventory balance again to reflect this sale:

Beginning inventory balance = 20 units x $20 = $400 
- Sold 50 units x $20 (remaining 20 units at $20) = $1,000 
= Ending inventory balance after January 29 sale = $0

Therefore, the inventory balance after the sale on January 14 is $200, which is closest to answer choice A, $230.

Berring Sales Uses FIFO