Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2016.The following purchases and sales were made during September:
- What was the value of cost of goods sold of Algo,using the FIFO assumption?
A) $2640
B) $2700
C) $2720
D) $2400

Question

Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2016.The following purchases and sales were made during September: 
- What was the value of cost of goods sold of Algo,using the FIFO assumption?
A) $2640 
B) $2700 
C) $2720 
D) $2400

Quizplus · Accepted Answer

Under the FIFO (First-In, First-Out) method, the cost of goods sold is calculated based on the oldest inventory being sold first. Without specific inventory purchase and sale details, it's not possible to accurately calculate or confirm the cost of goods sold for Algo. However, given the options provided and assuming the question is based on specific data, the correct answer is chosen as C) $2720, based on the assumption that this information was provided in a context not visible in the question.

Diligent Ltd Had 5 Units of the Commodity Algo on Hand