A firm’s accounting record showed that the firm had a beginning balance in inventory of 2,000 units at $5/unit cost; made two inventory purchases in February and June for 5,000 units at $6/unit cost and 3,000 units at $8/unit cost, respectively; and the ending balance in inventory was 4,000 units. Compute ending inventory and cost of goods sold under the FIFO inventory costing method. Choose an answer: A. Cost of goods sold $34,000; ending inventory $30,000 B. Cost of goods sold $42,000; ending inventory $22,000 C. Cost of goods sold $38,400; ending inventory $25,600
A firm’s accounting record showed that the firm had a beginning balance in inventory of 2,000 units at $5/unit cost; made two inventory purchases in February and June for 5,000 units at $6/unit cost and 3,000 units at $8/unit cost, respectively; and the ending balance in inventory was 4,000 units. Compute ending inventory and cost of goods sold under the FIFO inventory costing method. Choose an answer: A. Cost of goods sold $34,000; ending inventory $30,000 B. Cost of goods sold $42,000; ending inventory $22,000 C. Cost of goods sold $38,400; ending inventory $25,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A firm’s accounting record showed that the firm had a beginning balance in inventory of 2,000 units at $5/unit cost; made two inventory purchases in February and June for 5,000 units at $6/unit cost and 3,000 units at $8/unit cost, respectively; and the ending balance in inventory was 4,000 units. Compute ending inventory and cost of goods sold under the FIFO inventory costing method.
Choose an answer:
A. Cost of goods sold $34,000; ending inventory $30,000
B. Cost of goods sold $42,000; ending inventory $22,000
C. Cost of goods sold $38,400; ending inventory $25,600
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