Question

QUESTION 8 Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO. Units Sold at Retail Date May 1 Units Acquired at Cost 150 units a $10.00 220 units @ $12.00 Activities Beginning Inventory Purchase Sales Purchase Sales 10 140 units @ $20.00 100 units @ $13.00 90 units @ $21.00 $2,980 O $2,460 $2,850 $2,590 O $5,440

Answer 1

			Cost of goods sold			Ending inventory
	units	Units cost	Unit	Units cost	Total cost	Unit	Unit cost	Total cost
May 1						150	10	1,500
May 5	220	12				150	10	1,500
						220	12	2,640
May 10			140	10	1,400	10	10	100
						220	12	2,640
May 15	100	13				10	10	100
						220	12	2,640
						100	13	1,300
May 24			10	10	100
			80	12	960	140	12	1,680
						100	13	1,300
Total					$2,460			$15,400

Cost of goods sold = $2,460

Second option is the correct option

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