Question

Oriole Company has the following inventory data:

Answer 1

Answer:

$3,942

Explanation:

Step 1 : Determine number of units sold

Units Sold = Total units available for sale - Units remaining in inventory

                  = (45 + 157 + 22) - 56

                  = 168 units

Step 2 : Determine Cost of goods sold

FIFO assumes that the units to arrive first will be sold first.

Cost of goods sold = (45 units x $22) + (123 units x $24)

                               = $3,942

The amount allocated to cost of goods sold for July is: $3,942