FIFO Inventory Ledger
DATE Layer Dates Layer QTY Cost Per unit Layers Bal Inventory Balance
1/1/2009 Beginning balance 11/15/2008 1500 4 6000
11/30/2008 12000 3.5 42000
12/16/2008 9000 3.75 33750
12/23/2008 5000 3.5 17500 99250
on Jan 5 received order of 5000 dvd. invoiced amount 1867.35 which included shipping and handling. Terms 2/10, n/30. Our company ploicy is to take advantage of all discounts offered and records all purchases at the net amount, less discount. If we fail to apy with in the discounted period, the extra amount paid is charged to discounts lost and expensed as a finance charge.
on jan 7 a customer purchased 250 dvds on acount for 1500. since this customer is a reseller they do not need to pay sales tax.
How do these two transactions effect the FIFO inventory Ledger?
and How do I find out what the cost of goods sold on jan 7 to make a journal entry?
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