Question

Concord has the following inventory information. July 1 Beginning Inventory 30 units at $19 $570 7 Purchases 80 units at $18 1440 22 Purchases 10 units at $23 230 $2240 A physical count of merchandise inventory on July 31 reveals that there are 35 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is ___________.

Answer 1

Answer:

$1560

Explanation:

The inventory in hand is 35 units and the total number of units are 120 units which means the units sold are 85. According to First in First Out method, the total units that are sold first are 30 units at the rate $19 per unit and 55 units at the rate $18 per unit.

This means:

Inventory sold = $19*30 + $18*55 = $1560

So the amount allocated to cost of goods sold is $1560.