Weasley's Wizard Wheezes, Inc. (WwW) began its business in January 2019 as a wholesale distributor of candy. WWW's purchases throughout 2019 are shown below. WWW sold 250,000 units at $2.00 each during 2019. Units Purchased Unit Cost Total Cost January 2 30,000 $0.90 $27,000 February 5 25,000 0.88 22,000 March 10 33,300 0.90 29,970 April 15 July 10 40,000 0.95 38,000 74,900 1.02 76,398 October 13 60,000 1.05 63,000 December 31 20,000 1.20 24,000 $280,368 283,200 What is the amount of WWW's cost of goods sold during 2019 using the first-in, first-out (FIFO) cost flow assumption for its candy inventory? (Enter a whole number without a dollar sign.)
Weasley's Wizard Wheezes, Inc. (WwW) began its business in January 2019 as a wholesale distributor of candy. WWW's purchases throughout 2019 are shown below. WWW sold 250,000 units at $2.00 each during 2019. Units Purchased Unit Cost Total Cost January 2 30,000 $0.90 $27,000 February 5 25,000 0.88 22,000 March 10 33,300 0.90 29,970 April 15 July 10 40,000 0.95 38,000 74,900 1.02 76,398 October 13 60,000 1.05 63,000 December 31 20,000 1.20 24,000 $280,368 283,200 What is the amount of WWW's cost of goods sold during 2019 using the first-in, first-out (FIFO) cost flow assumption for its candy inventory? (Enter a whole number without a dollar sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Calculate COGS.
Transcribed Image Text:Weasley's Wizard Wheezes, Inc. (www) began its business in January 2019 as a wholesale
distributor of candy. WWW's purchases throughout 2019 are shown below. Www sold
250,000 units at $2.00 each during 2019.
Units
Total Cost
$27,000
Purchased Unit Cost
January 2
30,000
$0.90
February 5
25,000
0.88
22,000
March 10
33,300
0.90
29,970
April 15
40,000
0.95
38,000
74,900
60,000
July 10
1.02
76,398
October 13
1.05
63,000
24,000
$280,368
December 31
20,000
1.20
283,200
What is the amount of WwW's cost of goods sold during 2019 using the first-in, first-out
(FIFO) cost flow assumption for its candy inventory? (Enter a whole number without a dollar
sign.)
Expert Solution
Step 1
FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest company's inventory have been sold first.
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