Question

Glasgow Enterprises started the period with 70 units in beginning inventory that cost $2.50 each. During the period, the company purchased inventory items as follows. Glasgow sold 380 units after purchase 3 for $10.80 each.

Purchase No. of Items Cost
1 360 $ 3.00
2 120 $ 3.10
3 60 $ 3.50

Glasgow's cost of goods sold under FIFO would be:

Answer 1

Answer:

$1,105

Explanation:

The FIFO inventory system means first in, first out. It means that the first purchased inventory are the first to be sold.

Cost of goods sold = (70 × 2.50) + (310 × $3) = $175 + $930 = $1105

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