Question

Pepper Inc. has the following inventory data: July 1 Beginning inventory 20 units at $20 $ 400 7 Purchases 70 units at $21 1,470 22 Purchases 10 units at $22 220 $2,090 A physical count of merchandise inventory on July 30 reveals that there are 25 units on hand. Using the FIFO inventory method and a periodic inventory system, the amount allocated to cost of goods sold for July is Group of answer choices

Answer 1

Answer:

COGS= $1,555

Explanation:

Giving the following information:

Pepper Inc. has the following inventory data:

July 1 Beginning inventory 20 units at $20 $ 400

July 7 Purchases 70 units at $21 $1,470

July 22 Purchases 10 units at $22 $220

A physical count of merchandise inventory on July 30 reveals that there are 25 units on hand.

FIFO (first-in, first-out)

Units sold= 100 units - 25= 75 units

COGS= 20* $20 + 55*$21= $1,555