Nordic Industries uses a periodic inventory system.During its first month of operations,Nordic Industries purchased inventory as follows: There were 100 units in ending inventory on January 31.
Under the FIFO cost method,what is the cost of goods sold for January?
A)$17,250
B)$16,500
C)$18,750
D)$18,000

Question

Nordic Industries uses a periodic inventory system.During its first month of operations,Nordic Industries purchased inventory as follows:  There were 100 units in ending inventory on January 31.
Under the FIFO cost method,what is the cost of goods sold for January?
A)$17,250 
B)$16,500 
C)$18,750 
D)$18,000

Quizplus · Accepted Answer

Under the FIFO cost method,the first goods purchased are the first sold.
Cost of Goods Sold = Cost of Goods Available for Sale − Ending Inventory
= $20,250 − (100 units × $30 per unit)= $17,250

Nordic Industries Uses a Periodic Inventory System