Question

Anton Co. uses the perpetual inventory method. Anton purchased 400 units of inventory that cost $12.00 each. At a later date the company purchased an additional 600 units of inventory that cost $16.00 each. If Anton uses the FIFO cost flow method and sells 700 units of inventory, the amount of cost of goods sold will be:

A.$11,200.
B.$10,400.
C.$8,400.
D.$9,600.

Answer 1

$9,600

Step-by-step explanation:

The calculation of cost of goods sold is calculating by FIFO method is given below:-

Purchased units = 400

Inventory unit = $12

The amount = $4,800

Inventory Sells units = 700

Purchased units = 400

= 700 units - 400 units

= 300 units

= 300 × $16

= $4,800

So, the cost of goods sold is

= $4,800 + $4,800

= $9,600