Question

a bakery receives 100 loaves of bread each day of the week. The table below displays how much is spent each day last week. The bakery uses FIFO. It had 125 loaves of bread left on Friday afternoon, what is the current value of its stock

Answer 1

Answer:

$275

Step-by-step explanation:

Day                                   Price                     Unit price

Monday                            $245                        $2.45

Tuesday                           $315                          $3.15

Wednesday                     $275                         $2.75

Thursday                         $200                         $2.00

Friday                              $225                         $2.25

the first in, first out (FIFO) method uses the price of the oldest units to determine the cost of goods sold:

the ending inventory should = 100 units purchased Friday + 25 units purchased Thursday = (100 x $2.25) + ($25 x $2) = $225 + $50 = $275