Anton Company uses the perpetual inventory system and FIFO cost flow method. During the year, Anton purchased 1,080 units of inventory that cost $7 each and then purchased an additional 1,110 units of inventory that cost $9 each. If Anton sells 1,550 units of inventory, what is the amount of cost of goods sold?
A)$13,950
B)$11,790
C)$10,850
D)$14,260

Question

Quizplus · Accepted Answer

Under FIFO, the first units purchased are the first to be sold. Anton sells 1,080 units at $7 each and 470 units at $9 each. The cost of goods sold is (1,080 x $7) + (470 x $9) = $11,790.

Anton Company Uses the Perpetual Inventory System and FIFO Cost