Revision (Inventory and Cost of Sales )

No of Ending Inventory units =

• Units available for sales + Units sold

• Units sold X Units available for sales

• Units available for sales – Units sold

FIFO stands for

• last in first out

• freight in freight out

• first in first out

Gross Profit =

• Sales – Cost of Goods Sold

• Sales + Cost of Goods Sold

• Sales X Cost of Goods Sold

A company has inventory of

60 units at a cost of BD20 each on June 1.

On June 3, it purchased 50 units at BD25 each.

70 units are sold on June 5.

Using the FIFO periodic inventory method.

What is the cost of the 30 units that were sold?

• 1200

• 110

• 1450

From question above calculate the Value of Cost of goods available for sale.

• 7600

• 6700

• 600

INVENTORY

is a Capital that is intended for sale, or to be used in producing goods.

• Tue

• False

Cost of Goods Available for Sales = Beginning Inventory + Cost of Purchases

• True

• False

COGS =

• Cost of Goods Available for Sales + Ending Inventory

• Units available for sales – Units sold

• Cost of Goods Available for Sales – Ending Inventory

If a Beginning Inventory = 3000 units @ BD10

Purchases = 4,000 units @ BD20

Sales = 2,000 units @ BD30

Compute the number of units in ending inventory

• 5000 Units

• 1000 Units

• 7000 Units

If a Beginning Inventory = 3000 units @ BD10

Purchases = 4,000 units @ BD20

Sales = 2,000 units @ BD30

Compute COGS ( FIFO) method

• 40000

• 20000

• 7000