Table 6-6 Sam's Wholesale Bikes $\begin{array} { | l | l | }
\hline \text { January } 1 \text { inventory balance } & 15 \text { units at } \$ 350 \text { per unit } \
\hline \text { January } 4 \text { purchase } & 50 \text { units at } \$ 375 \text { per unit } \
\hline \text { January } 15 \text { sale } & 40 \text { units at } \$ 550 \text { per unit } \
\hline \text { February } 8 \text { purchase } & 80 \text { units at } \$ 405 \text { per unit } \
\hline \text { February } 15 \text { sale } & 70 \text { units at } \$ 550 \text { per unit } \
\hline
\end{array}$
-Refer to Table 6-6. What is the cost of goods sold for the two months assuming that Sam's uses the periodic FIFO inventory method?

Question

Table 6-6 Sam's Wholesale Bikes $\begin{array} { | l | l | } 
\hline  \text { January } 1 \text { inventory balance } & 15 \text { units at } \$ 350 \text { per unit } \
\hline \text { January } 4 \text { purchase } & 50 \text { units at } \$ 375 \text { per unit } \
\hline \text { January } 15 \text { sale } & 40 \text { units at } \$ 550 \text { per unit } \
\hline \text { February } 8 \text { purchase } & 80 \text { units at } \$ 405 \text { per unit } \
\hline \text { February } 15 \text { sale } & 70 \text { units at } \$ 550 \text { per unit } \
\hline
\end{array}$
-Refer to Table 6-6. What is the cost of goods sold for the two months assuming that Sam's uses the periodic FIFO inventory method?

Quizplus · Accepted Answer

Under the FIFO method, the oldest inventory costs are used up first. For the January 15 sale, 15 units at $350 and 25 units at $375 are used, totaling $14,625. For the February 15 sale, 25 units at $375 and 45 units at $405 are used, totaling $27,600. The total cost of goods sold is $42,225.

Table 6-6 Sam's Wholesale Bikes -Refer to Table 6-6