Question

Assume ShoeFanatic.com began January with 14. units of inventory that cost a total of $266. During January, ShoeFanatic.com purchased and sold goods as follows: Jan. 8 Purchase 42 units @ $20 14 Sale 35 units @ $40 22 Purchase 28 units @ $22 27 Sale 42 units @ $40 Under the FIFO inventory costing method and the perpetual inventory system, how much is ShoeFanatic.com's cost of goods sold for the sale on January 147 OA. 51,106 OB. $1,400 OC. $700 OD. 5686 Click to select your answer

Answer 1

SOLUTION :
FIFO METHDO
		COST OF GOODS AVAILABLE FOR SALE			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	No. of Units	Cost Per unit	Total	No. of Units	Cost Per unit	Cost of Goods Sold	No. of Units	Cost Per unit	Ending invetory
Jan, 01	Beginning Inventory	14	$19	$266
Jan, 08	Purchases	42	$                   20	$840
Jan, 14	Sales				14	$19	$266
					21	$               20	$420	21	$               20	$420
	Total	42		$840	35		$686	21		$420
	Answer = Option D = $ 686