Given the following information, determine the cost of goods sold for December 31 using the FIFO perpetual inventory method. December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.
A)$281.25
B)$332.10
C)$282.15
D)$290.70
E)$210.30

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) method assumes that the first units purchased are the first units sold. Therefore, the cost of goods sold for December 31st is calculated as follows:12 units sold on December 11th: 5 units @ $7 = $35, 7 units @ $9.40 = $65.8018 units sold on December 22nd: 1 unit @ $9.40 = $9.40, 17 units @ $10.15 = $172.55Total cost of goods sold = $35 + $65.80 + $9.40 + $172.55 = $282.75

Given the Following Information, Determine the Cost of Goods Sold