Given the following: FIFO method: 16 units left in inventory The cost of goods sold is:

Name: Given the following: FIFO method: 16 units left in inventory The cost of goods sold is:
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Question

Given the following: FIFO method: 16 units left in inventory  The cost of goods sold is:

Quizplus · Accepted Answer

Since we are using the FIFO method, the cost of the first 84 units sold would be at the rate of $55 per unit ($4,620). Then, the remaining 16 units sold would be at the rate of $52.50 per unit, which gives us a cost of $840. The total cost of goods sold would be $4,620 + $840 = $4,965, which is option C.

Given the Following: FIFO Method: 16 Units Left in Inventory