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22 April, 05:39

The inventory data for an item for November are: Nov. 1 Inventory 20 units at $19 4 Sold 10 units 10 Purchased 30 units at $20 17 Sold 20 units 30 Purchased 10 units at $21 Using a perpetual system, what is the cost of the goods sold for November if the company uses FIFO?

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  1. 22 April, 06:08
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    cost of goods sold = $580

    Explanation:

    The cost of the goods sold means the cost price of the total sales volume. As the company uses FIFO (First-in, First-out) method and also uses the perpetual inventory system, the cost of goods sold =

    Cost of goods sold =

    20 units * $19 = $380 (The price is from November 1)

    10 units * $20 = $200 (The price is from November 10)

    The total cost of goods sold (30 units) = $580
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