Use the final moving average cost per unit to calculate the ending value of inventory and the cost o

# Use the final moving average cost per unit to calculate the ending value of inventory and the cost o

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Use the final moving average cost per unit to calculate the ending value of inventory and the cost of  goods sold. Cost of Goods Available for Sale \$ 7,200 - Ending Inventory (100 × \$ 16.70) (1,670) = Cost of Goods Sold \$ 5,530 First-in, first-out . The first-in, first-out (FIFO) method assumes the first units purchased are the first  to be sold. In other words, the last units purchased are always the ones remaining in inventory. Using
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Unformatted text preview: this method, Zapp Electronics assumes that all 100 units in ending inventory were purchased on October 10. Cost of Goods Available for Sale \$ 7,200- Ending Inventory (100 × \$ 17) (1,700) = Cost of Goods Sold \$ 5,500...
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