Question

Moss co. uses the fifo method to calculate ending inventory. assuming 300 units are not sold, the cost of goods sold is: $7,600 $7,280 $3,120 $3,400

Answer 1

FIFO means First Come First Out.

In FIFO Method the Inventory Comes First are deducted from Inventory First at the time of Sales or transfer to Production unit. Based on this methodology the Value of Closing Stock will be :

Value of Closing Inventory = $ 3400.00

Value of Cost Sold = $7,600 + $7,200 + $3120 + $3400

Total = $ 21,400

cost of goods sold is $ 21,400