Inventory FIFO my number differs from the answer

Vitale's picture
Rank: Chimp | 12

I will be grateful for your help on finding my error. I am attaching the image with an exercise description, and an excel file, in which I computed COGS and the required Gross Profit. This is a tiny exercise.
I don't understand why my COGS under FIFO are incorrect (shall be 312,900.00, but my one is 308,000.00), and thus yield the incorrect Gross Profit, while both COGS and Gross Profit under LIFO are correct.

Thank you very much!

Office spreadsheet icon Computations37 KB

Comments (2)

Jun 13, 2017

Found the solution: as you do FIFO you are supposed to first take out the beginning inventory (i.e. the 7000 units at $2.00 each). If you do this, you will obtain the $312,900 COGS

Jun 13, 2017