Use the following inventory related information for Questions below
The following data regarding purchases and sales of a commodity were taken from the perpetual inventory account of Hailey Company:

-Using the perpetual FIFO method, what amount would be reported for Cost of Goods sold for the month of May?
A) $2,240
B) $2,255
C) $2,245
D) $2,230

Question

Use the following inventory related information for Questions below
The following data regarding purchases and sales of a commodity were taken from the perpetual inventory account of Hailey Company:
 
-Using the perpetual FIFO method, what amount would be reported for Cost of Goods sold for the month of May?
A) $2,240 
B) $2,255 
C) $2,245 
D) $2,230

Quizplus · Accepted Answer

FIFO (First-In, First-Out) method assumes that the first items purchased are the first items sold. Therefore, the cost of goods sold for May would be the cost of the 80 units purchased in April ($2,240).

Use the Following Inventory Related Information for Questions Below