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 periodic FIFO,cost of goods sold for the month ended June 30 equals ________.

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Quizplus · Accepted Answer

Under the periodic FIFO (First-In, First-Out) method, the cost of goods sold is calculated based on the oldest inventory costs first. The first 10 items sold would be from the beginning inventory at $100 each, and the next 5 items would be from the June 8 purchase at $120 each. Therefore, the cost of goods sold is (10 items * $100) + (5 items * $120) = $1,000 + $600 = $1,600.

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