Question

NLX Inc. uses the FIFO method of valuing inventory. As of October 31, they had sold 200 shredders and had 95 shredders in their inventory. Find the cost of the goods sold.

Answer 1

Missing data:
Date units received Unit cost
Oct. 5 100 31.90
Oct. 12 50 30.89
Oct. 21 115 31.75
Oct. 28 30 30.95

FIFO stands for first in first out. This means that the the oldest shredder is sold first.

Sold 200 shredders:
100 * 31.90 = 3,190
50 * 30.89 = 1,544.50
50 * 31.75 = 1,587.50
200 6,322

Ending Inventory cost is:
115 - 50 = 65
65 * 31.75 = 2,063.75
30 * 30.95 = 928.50
95 2,992.25