Question

Lauer Corporation provided the following information about one of its laptop computers: Date Transaction Number of Units Cost per Unit 1/1 Beginning Inventory 170 $ 870 5/5 Purchase 270 $ 970 8/10 Purchase 370 $ 1,070 10/15 Purchase 235 $ 1,120 During the year, Lauer sold 925 laptop computers. What was cost of goods sold using the FIFO cost flow assumption? Multiple ChoiceA. $942,500 B. $964,500 C. $946,156 D. $934,500

Answer 1

Answer:

D. $934,500.

Explanation:

FIFO Method:

170 x $870 = 147,900

270 x $970 = 261,900

370 x $1,070 = 395,900

115 x $1,120 = 128,800

Hence, Total Cost of Goods Sold for 925 Laptop Computers will be $934,500.