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April 1 Beginning Inventory 100 units @ $4 April 2 Sales 50 units April 3 Purchases 300 units @ $6 April 10 Sales 250 units April 21 Purchases 400 units @ $8 April 28 Sales 200 units Assuming a periodic inventory system is used, what is cost of goods sold under FIFO? Select one: a. $3,300 b. $2,400 c. $3,000 d. $2,100

April 1 Beginning Inventory 100 units @ $4 April 2 Sales 50 units April 3 Purchases 300 units @ $6 April 10 Sales 250 units April 21 Purchases 400 units @ $8 April 28 Sales 200 units Assuming a periodic inventory system is used, what is cost of goods sold under FIFO? Select one: a. $3,300 b. $2,400 c. $3,000 d. $2,100

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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### Inventory Transactions and Cost of Goods Sold Calculation (FIFO Method) **Inventory Data Table:** - **April 1:** - Beginning Inventory: 100 units at $4 each - **April 2:** - Sales: 50 units - **April 3:** - Purchases: 300 units at $6 each - **April 10:** - Sales: 250 units - **April 21:** - Purchases: 400 units at $8 each - **April 28:** - Sales: 200 units **Question:** Assuming a periodic inventory system is used, what is the cost of goods sold (COGS) using the FIFO (First-In, First-Out) method? **Select one:** - a. $3,300 - b. $2,400 - c. $3,000 - d. $2,100 **Explanation:** The FIFO method assumes that the first units purchased are the first ones to be sold. To calculate the COGS, account for the cost of the inventory sold in the order it was purchased.
Transcribed Image Text:### Inventory Transactions and Cost of Goods Sold Calculation (FIFO Method) **Inventory Data Table:** - **April 1:** - Beginning Inventory: 100 units at $4 each - **April 2:** - Sales: 50 units - **April 3:** - Purchases: 300 units at $6 each - **April 10:** - Sales: 250 units - **April 21:** - Purchases: 400 units at $8 each - **April 28:** - Sales: 200 units **Question:** Assuming a periodic inventory system is used, what is the cost of goods sold (COGS) using the FIFO (First-In, First-Out) method? **Select one:** - a. $3,300 - b. $2,400 - c. $3,000 - d. $2,100 **Explanation:** The FIFO method assumes that the first units purchased are the first ones to be sold. To calculate the COGS, account for the cost of the inventory sold in the order it was purchased.
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