Question
A company purchases inventory as shown: Date Units Cost of each Cost of purchase January 1 20 $3.00 $60.00 January 6 20 $2.80 $56.00 January
A company purchases inventory as shown:
| Date | Units | Cost of each | Cost of purchase |
| January 1 | 20 | $3.00 | $60.00 |
| January 6 | 20 | $2.80 | $56.00 |
| January 12 | 20 | $2.70 | $54.00 |
| January 26 | 20 | $2.50 | $50.00 |
| January 29 | 20 | $2.50 | $50.00 |
| Totals | 100 | | $270.00 |
If the company sells 80 of the units at $3.50 each, what is the cost of goods sold using the FIFO cost assumption?
a. $220
b. $210
c. $216
d. $215
e. $270
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Financial ACCT2
Authors: Norman H. Godwin, C. Wayne Alderman
2nd edition
9781285632544, 1111530769, 1285632540, 978-1111530761
