Question

Question 23 1 pts Our company had the following balances and transactions during the current year related to merchandise inventory. Beginning merchandise inventory on January 1 120 units at $70 per unit Purchase on February 14 100 units at $85 per unit Sale on August 21 150 units What would be the company's cost of goods sold in dollars on December 31 if the company used perpetual, first in, first out (FIFO) method? 0 $4,900 $5,950 $10,950 O $12,000

Answer 1

Correct answer----------$10,950

Working

FIFO
Total Units Available for sale		220
Units Sold		150
Closing Stock in Units		70
Valuation
Ending Inventory	70	@	$             85.00	$ 5,950
Value Of Ending Inventory				$ 5,950
Cost of Goods sold [16900-5950]				$ 10,950

..

	Units	Cost per unit	value
Beginning Balance	120	$                   70.00	$ 8,400
Purchases
	100	$                   85.00	$ 8,500
Total	220		$ 16,900