Use the following information for questions
Chase Co.uses the perpetual inventory method.The inventory records for Chase reflected the following

-Assuming Chase uses a FIFO cost flow method,the cost of goods sold for the sales transaction on January 31 is:
A)$1,020.
B)$1,005.
C)$1,045.
D)$340.

Question

Use the following information for questions
Chase Co.uses the perpetual inventory method.The inventory records for Chase reflected the following
 
-Assuming Chase uses a FIFO cost flow method,the cost of goods sold for the sales transaction on January 31 is:
A)$1,020. 
B)$1,005. 
C)$1,045. 
D)$340.

Quizplus · Accepted Answer

Under the FIFO (First-In, First-Out) method, the oldest inventory costs are used up first. Therefore, the cost of goods sold would be calculated using the costs of the earliest purchased inventory.

Use the Following Information for Questions