The cost of this inventory by FIFO will be $ 880.The cost of this inventory by FIFO is equal to the cost of your oldest inventory and multiply that cost by the number of goods sold.
<h3>What is inventory?</h3>
Both the raw materials required to make products and the products that are on hand for sale are included in inventory.
A furniture outlet has made the following wholesale purchase of a new kitchen chair.;
No of the chairs cost
18 $ 55
19 $ 60
12 $ 55
The cost of this inventory by FIFO
No of the chairs are still in stock = 33
No of the chairs sold= (18+19+12)-33
=16
Cost of oldest inventory = $ 55
No of inventory sold =16
The cost of this inventory by FIFO is found as;
C = $ 55 × 16
C= 880
Your inventory remaining value is $ 1910.00.
Your Cost of Goods Sold (COGS) is $ 880.00.
Hence, the cost of this inventory by FIFO will be $ 880.
To learn more about the inventory refer;
brainly.com/question/14184995
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