Question

Ntercontinental, Inc., uses a perpetual inventory system. Consider the following information about its inventory: July 1, purchased 10 units for $910 or $91 per unit; July 3, purchased 15 units for $1,590 or $106 per unit; July 14, sold 20 units; July 17, purchased 20 units for $2,300 or $115 per unit; July 28, purchased 10 units for $1,190 or $119 per unit; July 31, sold 23 units.
Using FIFO, the cost of goods sold for the sale of 23 units on July 31 is ____ and the inventory balance at July 31 is _____.

Answer 1

Answer:

Using the FIFO (First in First Out) method, the COGS (Cost of goods sold) is $2,600 and the ending inventory is $1,420.

Explanation:

The table showing the COGS and ending inventory by using the method of FIFO: