Question

Question 29 2 pts A company had the following purchases and sales during its first year of operations January February May: September: November: Purchases 10 units at $120 20 units at $125 15 units at $130 12 units at $135 10 units at $140 Sales 6 units 5 units 9 units 8 units 13 units On December 31, there were 26 units remaining in ending inventory. Using the perpetual FIFO inventory costing method, what is the value of cost of goods sold? (Assume all sales were made on the last day of the month.) $3.540 $8,670 $3,270. $5,130 $5,400 o e - 9 & WR ViewSonic

Answer 1

1) Solution: $5130

Working: Number of units sold = Purchases - Closing inventory = 67 - 26 = 41 units

COGS = 10 units * $120 + 20 units * $125 + 11 units * $130 = $5130

2) Solution: $59

Working:

	Purchases			COGS			Closing stock
	Units	Per units	Total	Units	Per units	Total	Units	Per units	Total
Jan-01	10	4	40				10	4	40
Jan-09				6	4	24	4	4	16
Jan-17	8	5.5	44				12	5	60
Jan-27				7	5	35
Total				13		59