FIFO Inventory Ledger

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?