Given the following information, determine the cost of goods sold for December 31 using the FIFO periodic 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)$282.15
B)$332.10
C)$281.25
D)$297.00
E)$284.70

Question

Quizplus · Accepted Answer

Using the FIFO periodic inventory method, the cost of goods sold for December 31 is calculated as follows:
- First, the cost of the 12 units sold on December 11 is calculated: 12 units x $7 (cost of first 5 units purchased) = $84
- Next, the cost of the 18 units sold on December 22 is calculated: 5 units x $7 + 10 units x $9.40 (cost of next 10 units purchased) + 3 units x $10.15 (cost of 3 units from the final 20 units purchased) = $159.50
- The total cost of goods sold is the sum of the costs of the units sold: $84 + $159.50 = $243.50
Therefore, the correct answer is C) $281.25 (which is an option that is not listed, but is closest to the calculated value).

Given the Following Information, Determine the Cost of Goods Sold