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Inventory records for Marvin Company revealed the following:

Date Transaction Number
of Units Unit
Cost
Mar. 1 Beginning inventory 990 $7.25
Mar. 10 Purchase 570 7.73
Mar. 16 Purchase 710 8.20
Mar. 23 Purchase 520 8.60

Marvin sold 1,900 units of inventory during the month. Cost of goods sold assuming FIFO would be

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Respuesta :

Answer: $14371.6

Explanation:

Given that,

According to FIFO method,

Marvin sold = 1,900 units of inventory during the month

Cost of Beginning inventory = 990 × $7.25

                                               = $7177.5

on Mar. 10

Cost of Purchase = 570 × $7.73

                             = $4,406.1

Remaining purchases = Total units sold - Beginning inventory - number of units purchase on mar 10

                                    = 1,900 - 990 - 570

                                    = 340 units

Cost of remaining purchases = 340 units × $8.2

                                                 = $2,788

Total cost of goods sold = Cost of Beginning inventory + Cost of Purchase +  Cost of remaining purchases

                                         = $7177.5 + $4,406.1 + $2,788

                                         = $14371.6

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