Question

Using the fifo method what is the cost of goods sold in september

Answer 1

Answer:

1805

Explanation:

Number of units sold in September = 160 units

Using the first - In, First out inventory method : assumes that the oldest (first) inventory items have been sold first.

Inventory items will first be sold from April, the May and so on :

Unit price in April = $11 ; Number of items = 115

($11 * 115) = $1265

(160 - 115) = 45 units

This 45 units will be sold at unit price for May :

(45 * $12) = $540

Cost of goods sold in September :

$1265 + $540 = $1805