Question

a company has beginning inventory of 11 units at a cost of 29 each on february 1 on february 3 it purchases 39 units at 31 each 17 units are sold on february 5 using the fifo periodic inventory method what is the cost of the 17 units that are sold

Answer 1

COGS= $505

Step-by-step explanation:

Giving the following information:

Beginning inventory of 11 units for 29 each

February 3 purchases 39 units at 31 each

17 sold

Under the FIFO (first-in, first-out) method, to calculate the cost of goods sold, we need to use the cost of the firsts units incorporated into inventory.

COGS= 11*29 + 6*31

COGS= $505