On June 1,beginning inventory consists of ten items that cost $100 each.On June 8,ten more items are purchased at $120 each.On June 12,fifteen items are sold for $200 each.On June 28,ten items are purchased at $130 each.Using perpetual FIFO,cost of goods sold for the month ended June 30 equals ________.

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Quizplus · Accepted Answer

Under the perpetual FIFO method, the first items purchased are the first ones sold. The cost of goods sold for the 15 items would be calculated as follows: 10 items at $100 each = $1,000, and 5 items at $120 each = $600. Adding these together gives a total cost of goods sold of $1,600.

On June 1,beginning Inventory Consists of Ten Items That Cost