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Anika [276]
3 years ago
10

ABC Co. uses a perpetual inventory system and uses the FIFO cost flow assumption. During the month, it had two sales.

Business
1 answer:
Oksana_A [137]3 years ago
3 0

Answer:

Cost of goods sold for the first sale made on Jan. 10: $141

Explanation:

The FIFO is a method used to account value for inventory. Under the method, the first item of inventory purchased is the first one sold.

Jan 1 Beginning Inventory 8 units, $12 per unit, total $96

Jan 5 Purchase 12 units, $15 per units, total $180

Jan 10 Sale 11 units, $50 per unit

Cost of good sold = 8 x $12 + 3 x $15 = $141

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