help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / ABC Corporation has the following inventory information for March, 2019:  Units SUnit cost S Total Cost Beg

ABC Corporation has the following inventory information for March, 2019:  Units SUnit cost S Total Cost Beg

Finance

ABC Corporation has the following inventory information for March, 2019: 
Units SUnit cost S Total Cost Beg. Inv. 2,500 10.50 26,250 Purchase 1 3,200 10.75 34,400 Purchase 2 2,700 11.00 29,700 Purchase 3 2,000 11.25 22,500 Total 10,400 112.850 
On March 31, ABC has 2,800 units in ending inventory. Using the periodic FIFO (first-in, first-out) method, what is cost of goods sold (COGS) for March? C. a. 581,550 0 b. S83,450 O c. S83,375 d. S81.350 
Click Submit to complete this assessment. 
 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Computation of Cost of Goods Sold for March:

Unit Sold = Total Units Available- Units In Ending Inventory

= 10,400 - 2800

= 7600 Units

 

According to FIFO Method units purchased first will be sold out first. 

So,

Cost of Goods Sold:

Beginning Inventory = 2,500*$10.50 = $26,250

Purchase 1 = 3,200*$10.75 = $34,400

Purchase 2 = (7,600-2,500-3,200)*$11 = $20,900

Cost of Goods Sold = $26,250+$34,400+$20,900 = $81,550

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)

Related Questions