Question

UJUMLUDUMIEssaise Calculator following was taken from the inventory records during May. The company had no beginning The Boxwood Company sells blankets for $38 each. Th inventory on May 1. Date Blankets Units Cost May 3 Purchase 9 $16 10 Sale 17 Purchase 20 23 Sale Sale 30 Purchas Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the UFO inventory cost method. a. 564 b. $100 c. $264 d. $54 01 AM 16 Check My Work

Answer 1

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Date Tere Units Cost per unit Cost of Goods sold May,20 6 $ 18 $ 108 Hence the cost of Goods sold May, 20 = $108 at the cost of an item of Inventory is $59 and Current replacement cost is $67, the amount Ancluded in inventory according to the lowers Cost or market is - $ 59