Metro Computer Company had the following balances and transactions during 2014. $$\begin{array} { | l | l | }
\hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \
\hline \text { March } 10 & \text { Sold } 50 \text { units } \
\hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \
\hline \text { October 30 } & \text { Sold } 150 \text { units } \
\hline
\end{array}$$
- What would the Cost of goods sold be as reported on the income statement at December 31,2014 if the perpetual First-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

Question

Metro Computer Company had the following balances and transactions during 2014. $$\begin{array} { | l | l | } 
\hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \
\hline \text { March } 10 & \text { Sold } 50 \text { units } \
\hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \
\hline \text { October 30 } & \text { Sold } 150 \text { units } \
\hline
\end{array}$$
- What would the Cost of goods sold be as reported on the income statement at December 31,2014 if the perpetual First-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

Quizplus · Accepted Answer

Under the perpetual FIFO method, the cost of goods sold is calculated by selling the oldest inventory first. The calculation is as follows: - For the first sale of 50 units: 50 units * $75 = $3,750 - For the second sale of 150 units: The remaining 50 units from the beginning inventory at $75 each = $3,750, plus 100 units from the June purchase at $80 each = $8,000. Total for the second sale = $3,750 + $8,000 = $11,750. Adding both sales together: $3,750 (first sale) + $11,750 (second sale) = $15,500.

Metro Computer Company Had the Following Balances and Transactions During