The finished goods inventory of Tourist bicycles on October 1 consisted of 250 bikes with a total cost of $107,500. During the fourth quarter, 2,030 bikes were sold at 130 percent of their cost. The firm uses the perpetual inventory record and the first-in-first-out (FIFO) method to determine the balances on both Cost of Goods Sold and Finished Goods Inventory accounts

1. What is the cost of goods sold recognized for the sale? What are the revenues generated during the fourth quarter?

Department 1 DM cost/EU 80.00 Conversion cost/EU 161.92 Total costs assigned to units transferred out 527,170.32 Total costs assigned to spoiled units 15,467.57 Department 2 DM cost/EU 118.88 Conversion cost/EU 75.68 Prior Dept. Cost/EU 253.45 Total costs assigned to units transferred out 938,161.71 Total costs assigned to spoiled units 19,456.68 Department 1 DM cost/EU 80.00 Conversion cost/EU 161.92 Total costs assigned to units transferred out 527,170.32 Total costs assigned to spoiled units 15,467.57 Department 2 DM cost/EU 118.88 Conversion cost/EU 75.68 Prior Dept. Cost/EU 253.45 Total costs assigned to units transferred out 938,161.71 Total costs assigned to spoiled units 19,456.68