Question

Glasgow Enterprises started the period with 60 units in beginning inventory that cost $2.00 each. During the period, the company purchased inventory items as follows: Purchase 1 2 3 No. of Items 390 105 55 Cost $2.50 $2.60 $3.00 Glasgow sold 300 units after purchase 3 for $8.10 each. What is Glasgow's cost of goods sold under FIFO? Multiple Choice $720 o $600 $900 $802 < Prev 24 25 26 Next > of 28 Q Search or enter website name $ 6 7 8 2 5 3

Answer 1

According to FIFO method

Total Units sold. = 300 units

out of 300 units, 60 units sold as beginning inventory and balance is sold from Purchase 1

So the COGS = 60*2 + 240*2.50 = $720

Cost of goods sold = $720