12. WellSurf Ltd sells one type of surfboard and has the following inventory transactions for the half year ending 31 December 2020:

Units

Price/unit

Total

Opening inventory at 1 July 2020

500

$250

$125,000

Purchases on 1 August 2020

1000

$260

$260,000

Purchases on 15 October 2020

500

$290

$145,000

Purchases on 20 December 2020

900

$300

$270,000

Total

2900

$800,000

During the year, WellSurf Ltd sells 2500 surfboards. The company uses the periodic system to manage inventory.

What is the cost of goods sold amount using the FIFO method?

a.

$689 655.

b.

$700 000.

c.

$680 000.

d.

$860 000.