Question

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetua/inventory system. Determine the cost assigned to cost of goods sold using FIFO. Units Sold at Retail Units Acquired at Cost 150 units @ $10.00 220 units a $12.00 1 100 units a $13.00 220 Date Activities May 1Beginning Inventory 5Purchase 10 Sales 15 Purchase 24 Sales ltea $12 od 140 units @ $20.00 150 units @ $21.00 Multiple Choice O $2,260 $3,180

Answer 1

Correct answer----------$3,180

Working

FIFO
Total Units Available for sale		470
Units Sold		290
Closing Stock in Units		180
Valuation
Ending Inventory	100	@	$             13.00	$ 1,300
	80	@	$             12.00	$ 960
Value Of Ending Inventory				$              2,260
Cost of Goods sold				$              3,180