Question

on december 31 of last year, wolfson corporation had in inventory 450 units of its product, which costs $22 per unit to produce. during january, the company produced 850 units at a cost of $25 per unit. assuming that wolfson corp. sold 800 units in january what was the cost of goods sold(assume FIFO inventoryaccounting)

Answer 1

$18,650

Step-by-step explanation:

FIFO means first in, first out. It means its the oldest inventory that are sold first .

If the company sold 800 inventory, the 800 would be taken from the beginning inventory which is a total of 450 and the remaining 350 would be taken from the inventory produced in January.

Cost of goods sold

450×$22 = $9,900

350 ×$25= $8,750

$9,900 + $8,750 = $18,650

I hope my answer helps you