The Acme Corporation buys 300 units of merchandise in January at $5 each.In February,Acme buys 500 units at $4 each and in March it buys 200 units at $6 each.Acme sells 150 units during this quarter.What is the cost of goods sold under the FIFO method?

Question

Quizplus · Accepted Answer

FIFO method determines cost of goods sold using the cost of the oldest units first.150 units @ $5/unit = $750.

The Acme Corporation Buys 300 Units of Merchandise in January