Case Woodson Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Woodson Company uses the perpetual inventory system Purchases Sales Units Unit Cost Units Selling Price/Unit 3/1 Beginning inventory 100 $40 3/3 Purchase 60 $50 60 $80 3/4 Sales 3/10 Purchase 200 $55 3/16 Sales 90 3/19 Sales 70 3/25 Sales 8 23 $90 $90 $90 3/30 Purchase 40 560 Instructions Using the FIEQ assumption, calculate the amount charged to cost of goods sold for March. (Show computations) Answer: Purchases Sales Units 3/1 Beginning inventory 100 Unit Cost $40 Units Selling Price/Unit 3/3 Purchase 60 $50 3/4 Sales 3/10 Purchase 3/16 Sales 200 $55 555 3/19 Sales 3/25 Sales 3/30 Purchase 2 828 60 $80 90 $90 70 $90 60 $90 40 $60 400 280 (a) Using FIFO-the earliest units purchased were the first sold. 3/1 100 3/3 60 $40 @50 = $ 4,000 = 3/10 120 @55 (20x280) 100+ 60-to 280 units 3,000 6.600 $13.600 Cost of goods sold