question archive Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7
Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7
Subject:FinancePrice:2.87 Bought7
Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7.50 each. During the period, the company purchased inventory items as follows. Glasgow sold 220 units after purchase 3 for $17.00 each.
|
Purchase |
No. of items |
Cost |
|
1 |
200 |
$ 9.00 |
|
2 |
150 |
$ 9.30 |
|
3 |
50 |
$ 10.50 |
Glasgow's cost of goods sold under FIFO would be:
A) $1,650.
B) $1,860.
C) $2,310.
D) $2,100.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
B )
Step-by-Step explanation
Cost of goods sold under FIFO method = 80 units from beginning inventory + 140 units from first purchase
Cost of goods sold under FIFO method = (80 units x $7.50) + ((220 units - 80 units) x $9.00)
= $600 + (140 units x $9.00)
= $600 + $1,260
= $1,860
