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shtirl [24]
3 years ago
6

A physical count of merchandise inventory on November 30 reveals that there are 96 units on hand. Cost of goods sold (rounded) u

nder FIFO is
Business
1 answer:
dedylja [7]3 years ago
5 0

Answer: $1,712

Explanation:

If the company uses FIFO it means that they sell their earlier inventory first. If there are 96 units on hand, it means that these 96 units would be the latest inventory.

That means that these 96 units comprise of:

  • 86 units purchased on November 25 at $6.30 each and,
  • 10 units from the November 17 purchase of 58 units at $6.05 each which means 48 units were sold from this purchase.

The units sold were therefore:

= (29 * 5.80) + (115 * 6.20) + (48 * 6.05)

= 168.20 + 713 + 290.40

= $1,171.60

= $1,712

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John, an executive at a top investment firm, often gets into heated arguments with his boss over differences in work ethics. In
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3 years ago
Using the information below for Sundar Company; determine the total manufacturing costs added during the current year:
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