Olympus Climbers Company has the following inventory data: $$\begin{array} { r l l r }
\text { July } 1 & \text { Beginning inventory } & 30 \text { units at } \$ 19 & \$ 570 \
7 & \text { Purchases } & 105 \text { units at } \$ 20 & 2,100 \
22 & \text { Purchases } & 15 \text { units at } \$ 22 & { 330 }\&&&{ \$ 3,000 }
\end{array}$$ A physical count of merchandise inventory on July 30 reveals that there are 48 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is
A)$930.
B)$990.
C)$2,010.
D)$2,070.

Question

Olympus Climbers Company has the following inventory data: $$\begin{array} { r l l r } 
\text { July } 1 & \text { Beginning inventory } & 30 \text { units at } \$ 19 & \$ 570 \
7 & \text { Purchases } & 105 \text { units at } \$ 20 & 2,100 \
22 & \text { Purchases } & 15 \text { units at } \$ 22 &  { 330 }\&&&{ \$ 3,000 }
\end{array}$$ A physical count of merchandise inventory on July 30 reveals that there are 48 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is
A)$930.
B)$990.
C)$2,010.
D)$2,070.

Quizplus · Accepted Answer

Under FIFO, the oldest costs are assigned to cost of goods sold. The company sold 102 units (150 total units - 48 units on hand). The cost of goods sold is calculated as: 30 units at $19 + 72 units at $20 = $570 + $1,440 = $2,010.

Olympus Climbers Company Has the Following Inventory Data A Physical Count of Merchandise Inventory on July 30 Reveals