Question

ABC Co. uses a perpetual inventory system and uses the FIFO cost flow assumption. During the month, it had two sales. Calculate the dollar value of its cost of goods sold for the first sale made on Jan. 10.

Answer 1

The cost of goods sold in dollars for the first sale made on Jan. 10, using FIFO, is $141.

What is the FIFO method?

FIFO means First-in, First-out.  

The FIFO inventory method assumes that the Jan. 10 sales of 11 units were made from goods in stock on January 1 and the purchase on Jan. 5.

Using FIFO under the perpetual inventory system, the cost of goods sold on Jan. 10 is calculated as follows:

Question Completion Data and Calculations:

Jan 1 Beginning Inventory 8 at $12= $96

Jan 5 Purchase 12 at $15= $180

Jan 25 Purchase 10 at $18= $180

Jan 10 Sale 11 units x $50 each

Jan 30 Sale 3 units x $55 each

Cost of goods sold on Jan. 10 using FIFO = 141 (8 x $12 + 3 x $15)

Thus, the cost of goods sold in dollars for the first sale made on Jan. 10, using FIFO, is $141.

Learn more about the FIFO method at brainly.com/question/11493725

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