Question

[The following information applies to the questions displayed below.] Glasgow Enterprises started the period with 80 units in beginning inventory that cost $2.70 each. During the period, the company purchased inventory items as follows: Purchase No. of Items Cost 1 250 $ 3.20 2 110 $ 3.30 3 60 $ 3.70 Glasgow sold 270 units after purchase 3 for $10.20 each. What is Glasgow's cost of goods sold under FIFO?

Answer 1

Cost of goods sold under FIFO = (80 units x $2.70) + (190 units x $3.20)

= $216 + $608

= $824

Glasgow's cost of goods sold under FIFO is $824.