Question

Assume Nile.com began May with 16 units of inventory that cost a total of $272. During May, Nile.com purchased and sold goods as follows: May 8 Purchase 48 units @ $18 14 Sale 40 units @ $36 22 Purchase 32 units @ $20 27 Sale 48 units @ $36 Under the FIFO inventory costing method and the perpetual inventory system, how much is Nile.com's cost of goods sold for the sale on May 14? O A. $720 O B. $704 O C. $1,136 OD. $1,440

Answer 1

Answer B $ 704 Cost of Good Sold on May 14 Under FIFO - Perpetual inventory system. Cost of Goods Sold Units Rate From , Beginning invnetory From , Purchases on May 8 Total $ 18 24 40 Cost $ 272 $ 432 $ 704 Under FIFO - Perpetual inventory system, Units sold will be issued from the beinning inventory and the next immediate purchases. Hece Cost of goods sold on May 14 will be calculated from the beginning inventory and units purchased on May 8.