RJ Corporation has provided the following information about one of their inventory items:

$$\begin{array}{ll}
\begin{array} { ll }
\text { Date } & \text { Transaction } \
1 / 1 & \text { Beginning Inventory } \
6 /6& \text { Purchase } \
9 / 10 & \text { Purchase } \
11/ 15 & \text { Purchase }
\end{array}
\begin{array} { l l}
\text { Number of Units } & \text { Cost per Unit } \
400& \$ 3,200 \
800 & \$ 3,600 \
1,200 & \$ 4,000 \
800 & \$ 4,200
\end{array}
\end{array}$$
During the year,3,000 units were sold. What was cost of goods sold using the FIFO cost flow assumption?
A)$11,680,000
B)$11,590,000
C)$11,480,000
D)$11,550,000

Question

RJ Corporation has provided the following information about one of their inventory items:

$$\begin{array}{ll}
\begin{array} { ll } 
\text { Date } & \text { Transaction } \
1 / 1 & \text { Beginning Inventory } \
6 /6& \text { Purchase } \
9 / 10 & \text { Purchase } \
11/ 15 & \text { Purchase }
\end{array}
\begin{array} { l l} 
\text { Number of Units } & \text { Cost per Unit } \
400& \$ 3,200 \
800 & \$ 3,600 \
1,200 & \$ 4,000 \
800 & \$ 4,200
\end{array}
\end{array}$$
 During the year,3,000 units were sold. What was cost of goods sold using the FIFO cost flow assumption?
A)$11,680,000
B)$11,590,000
C)$11,480,000
D)$11,550,000

Quizplus · Accepted Answer

Under FIFO, the oldest inventory costs are used first. The cost of goods sold is calculated as follows: (400 units x $3,200) + (800 units x $3,600) + (1,200 units x $4,000) + (600 units x $4,200) = $11,480,000.

RJ Corporation Has Provided the Following Information About One of Their