Question

Mika Enterprises uses a perpetual inventory system. The company had the following inventory and purchases for the month of March: Mar. 1 Beginning Inventory 35 @ $19.78 Mar. 8 Purchase 103 @ $25.09 Mar. 16 Sale 45 @ $29.49 Calculate the cost of goods sold for the year assuming the company uses a FIFO cost flow system Select one: a. $1327 b. $943 c. 52333 0 d. $1129

Please show all steps so I can fully understand how to solve. Thank you

Answer 1

Answer: Option ( B ) $943

Goods Purchsed units Unit Cost Total Cost units Date Mar-01 Beginning inventory Mar-08 Purchases Total Cost 692 103 @ 25.09 2584 Perpetual FIFO Cost of Goods sold Inventory Balance Unit Cost Cost of goods sold units Unit Cost 35 @ 19.78 = 35 @ 19.78 103 @ 25.09 138 @ 19.78 692 93 @ 25.09 @ 25.09 251 943 6921 2584 32771 2333 Mar-16 Sales 35 10 Total 2333