Question

Chicken Little started the month with 5 eggs in its inventory that cost $2 each. During the month, Chicken Little bought 30 more eggs that cost $2.50 each. At the end of the month, Chicken Little counted its inventory and found that 8 eggs remained unsold. If Chicken Little uses FIFO periodic, its Cost of Goods Sold for the month is

Answer 1

Answer:

$65

Step-by-step explanation:

#FIFO is a policy that effectively implies that goods will be sold as they are required.

-It therefore means that the last unsold 8 eggs were part of the last stock (of $2.5/egg)

$Cost \ Goods \Sold=5\times 2.0+2.50(30-8)\\=\ 65$

Hence the cost of goods sold for the month is $65