Lowery Company
Lowery Company uses a perpetual inventory system. The following information is available for the month of March:
$$\begin{array} { l l c }
\text { Mar. } & 1 \quad \text { On hand, } 10 \text { units at \$2 each } &\$ 20 \
4 & \text { Sold } 8 \text { units for } \$ 10 \text { each } & 80 \
22 & \text { Purchased } 50 \text { units at } \$ 4 \text { each } & 200 \
26 & \text { Sold } 48 \text { units for } \$ 10 \text { each } & 480
\end{array}$$
-Refer to the information provided in the figure Lowery Company.If the company uses the FIFO inventory costing method,how much is cost of goods sold for March?

Question

Lowery Company
Lowery Company uses a perpetual inventory system. The following information is available for the month of March:
 $$\begin{array} { l l c } 
\text { Mar. } & 1 \quad \text { On hand, } 10 \text { units at \$2 each } &\$ 20 \
4 & \text { Sold } 8 \text { units for } \$ 10 \text { each } & 80 \
22 & \text { Purchased } 50 \text { units at } \$ 4 \text { each } & 200 \
26 & \text { Sold } 48 \text { units for } \$ 10 \text { each } & 480
\end{array}$$
-Refer to the information provided in the figure Lowery Company.If the company uses the FIFO inventory costing method,how much is cost of goods sold for March?

Quizplus · Accepted Answer

FIFO (First-In, First-Out) assumes that the first units purchased are the first units sold. Therefore, the cost of goods sold for March is calculated as follows:8 units from the beginning inventory at $2 each = $1648 units from the purchase on March 22 at $4 each = $192Total cost of goods sold = $16 + $192 = $208

Lowery Company Lowery Company Uses a Perpetual Inventory System -Refer to the Information Provided in the Figure Lowery Company

Lowery Company
Lowery Company Uses a Perpetual Inventory System -Refer to the Information Provided in the Figure Lowery Company