Question

On December 1, Flint Electronics has three DVD players left in stock. All are identical, all are priced to sell at $77. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $47. Another, with serial #1045, was purchased on November 1 for $43. The last player, serial #1056, was purchased on November 30 for $36.

Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December, Flint Electronics' year-end.
The cost of goods sold using the FIFO ______.

Answer 1

Answer: $90

Explanation: closing stock as at November ending is 3, consisting of:

1 DVD bought on 1st June @ $47

1 DVD bought on 1st Nov @ $43

1 DVD bought on 30th Nov @ $36

using FIFO (First in first Out) inventory method, 2 of the DVD was sold as at the end of December.

Cost of goods sold in the month of December is $47 +$43 = $90