At the beginning of the current period , Muebles de Pavo Real , a furniture company out of Madrid , Spain , had the following data referring to its inventory at the end of March . They use the FIFO method for costing . They sold 1800 chairs : 300 of type A and 1000 of Type B and 500 of type C . They apply the lower of cost or market to the total inventory . Determine the cost of goods sold . Remember write - downs of inventory are included in the COGS . Cost / purchases Type A Type B Type C March 1 - Beginning* 200 - E 200 each 800 - 6 50 each 250 - E 100 each Inventory* March 10 - purchases | 10 - E 205 each 200 - E 45 each 125 - E 102 each March 15 - purchases 100 - E 52 each 250 - E 106 each March 20 - purchases | 90 - E 210 each 100 - E 1 10 each March 25 - purchases | 150 - E 205 each 175 - 6 55 each March 30 - purchases | 50 - E 207 each 450 - E 50 each Market for chairs at end of March Type A Type B Type C E 202 E 53 E 90 Sales :" Type A : Type B : Type C : 190 @ E 340 500 @ E 75 500 @ E 175 100 @ E 360 400 @ E 80 10 @ E 365 100 @ E 90 Cost using FIFO ( 10 points ) Type A Type B Type C Total : Value of ending inventory ( 5 points ) FIFO : Market Adjustment . Value of ending Inventory :" Gross Profit Margin : ( 10 points )