Question

Food & Stuff uses the FIFO method to find the cost of goods sold and the value of the ending inventory. The table records the number of units received in the month of June. On June 30th, they sold 102 hammers. What was the cost of goods sold?

Enter your answer in currency format and round to the nearest cent.
Week of Units received Unit cost
June 1 45 $9.98
June 8 15 $8.87
June 15 68 $8.76

Answer 1

Answer: The cost of goods sold= $950.07

Explanation:

Cost of goods available= 45x9.98 + 15x8.87 + 68x8.76= $1177.83

Units available= 128

Sold units= 102

Ending inventory= 128-102=26

Value of ending inventory= 26x8.76= $227.76

Cost of goods sold= cost of available goods – value of ending inventory

Cost of goods sold= 1177.83 – 227.76= $950.07