Harris Corporation's inventory of a particular product includes 200 units purchased at a per-unit cost of $50, and another 100 units purchased at a unit cost of $60. If Harris sells 10 units of this product, the cost of goods sold will be:
A) $500.
B) $550.
C) $660.
D) The answer will depend upon the inventory flow assumption in use.

Question

Quizplus · Accepted Answer

The cost of goods sold depends on the inventory flow assumption (e.g., FIFO, LIFO, or weighted average) used by the company.

Harris Corporation's Inventory of a Particular Product Includes 200 Units