Rio Company Uses the FIFO Inventory Costing Method and Has

question 105

Essay

Rio Company uses the FIFO inventory costing method and has a perpetual inventory system. All purchases and sales were cash transactions. The records reflected the following for January, 2014: $$\begin{array} { l c c } & \text { Units } & \text { Unit Cost } \\\text { Beginning inventory } & 100 & \$ 1.00 \\\text { Purchase, January } 6 & 200 & 1.20 \\\text { Sale, January } 10 \text { (at } \$ 2.40 \text { per unit) } & 110 & \\\text { Purchase, January 14 } & 100 & 1.30 \\\text { Sale, January } 29 \text { (at } \$ 2.60 \text { per unit) } & 170 &\end{array}$$ Required:
Determine the following:
A. 2014 cost of goods available for sale
B. 2014 cost of goods sold
C. 2014 ending inventory
D. The journal entries for January 6 and 10

---

Definitions:

Limited Partner(s)

Investors in a partnership who have limited liability to the extent of their investment and do not participate in day-to-day management.

Limited Partners

Individuals in a partnership who invest money but are not involved in daily management, and whose liability is limited to the amount of their investment.

General Partners

General partners are individuals in a partnership who are responsible for the operations of the business and are personally liable for the partnership's debts and obligations.

Management

The process or practice of directing and controlling a group or organization towards achieving set goals or objectives.