Question

Marigold Corp. has the following inventory data: July 1 Beginning Inventory 31 units at $16 $496 7 Purchases 109 units at $16 1744 22 Purchases 16 units at $17 272 $2512 A physical count of merchandise inventory on July 30 reveals that there are 39 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is _____.
A. $1872.
B. $1833.
C. $1888.
D. $1849.

Answer 1

Answer:

The correct answer is A.

Explanation:

Giving the following information:

July 1: Beginning Inventory 31 units at $16 $496

July 7: Purchases 109 units at $16 $1744

July 22: Purchases 16 units at $17 $272

A physical count of merchandise inventory on July 30 reveals that there are 39 units on hand.

FIFO (first-in, first-out)

Units sold= (31 + 109 + 16) - 39= 117

COGS= 31*16 + 86*16= $1,872