Question

Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar. 1 Beginning inventory 920 $ 7.30 Mar. 10 Purchase 590 7.75 Mar. 16 Purchase 790 8.16 Mar. 23 Purchase 520 8.56 Marvin sold 1,930 units of inventory during the month. Cost of goods sold assuming FIFO would be: (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.) Multiple Choice $16,966. $16,521. $15,689. $14,716.

Answer 1

COGS= $14,716

Step-by-step explanation:

Giving the following information:

Beginning inventory 920 $ 7.30

Mar. 10 Purchase 590 7.75

Mar. 16 Purchase 790 8.16

Mar. 23 Purchase 520 8.56

Marvin sold 1,930 units of inventory during the month.

Under the FIFO (first-in, first-out) method, the cost of goods sold is calculated using the cost of the first units incorporated into inventory:

COGS= 920*7.3 + 590*7.75 + 420*8.16

COGS= $14,715.7

COGS= $14,716