Use this information to answer the following question. $\begin{array}{ll}
\text { Beginning inventory } & 100 \text { units @ } \$ 8.00 \
\text { Purchase-Oct. } & 200 \text { units } \$ \$ .00 \
\text { Purchase-Dec. } & 100 \text { units } \$ 12.00
\end{array}$ A periodic inventory system is used; ending inventory is 140 units.
What is cost of goods sold under FIFO?
A) $1,760
B) $3,160
C) $2,160
D) $4,160

Question

Quizplus · Accepted Answer

FIFO (first-in, first-out) assumes that the first units purchased are the first units sold. Therefore, the cost of goods sold is calculated as follows:Beginning inventory: 100 units @ $8.00 = $800Purchase-Oct.: 140 units @ $9.00 = $1,260Total cost of goods available for sale: $2,060Ending inventory: 140 units @ $9.00 = $1,260Cost of goods sold: $2,060 - $1,260 = $800

Use This Information to Answer the Following Question A Periodic Inventory System Is Used; Ending Inventory Is 140