Question

using the fifo method and the list of inventory above, which of the following is the cost of goods sold during january? $187.50 $300.00 $237.50 $212.50

Answer 1

The simple-to-understand FIFO technique posits that commodities produced or acquired first are sold first for valuing inventories.

The FIFO approach is employed where?

It is a method for calculating the cost of products sold that supports the cost flow hypotheses. The FIFO methodology is based on the assumption that the oldest inventory goods in a company have previously been sold. The computation is based on the prices paid for those earliest items.

What does FIFO intend to achieve?

First in, first out (FIFO) is an uncomplicated approach of inventory valuation based on the presumption that commodities acquired or created first are sold first. This implies that older inventory is distributed to consumers before fresh inventory, in principle.

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