Quan uses a periodic inventory system.The company had the following data for the month of April:
$$\begin{array}{llll}
\text { April } 1 & \text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \
19 & \text { Purchased } 90 \text { units } @ \$ 3 \text { each } & 270 \
& \text { Cost of goods avail able for sale } & \$ 290\
30 &\text { On hand, } 20 \text { units }
\end{array}$$

-If Quan,Inc.uses the FIFO method,how much is cost of goods sold for April?
A)$230
B)$232
C)$240
D)$250

Question

Quan uses a periodic inventory system.The company had the following data for the month of April:  
$$\begin{array}{llll}
\text { April } 1 & \text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \
19 & \text { Purchased } 90 \text { units } @ \$ 3 \text { each } & 270 \
& \text { Cost of goods avail able for sale } & \$ 290\
30 &\text { On hand, } 20 \text { units }
\end{array}$$
 
-If Quan,Inc.uses the FIFO method,how much is cost of goods sold for April?
A)$230
B)$232
C)$240
D)$250

Quizplus · Accepted Answer

Under FIFO, the oldest inventory costs are used up first. Quan sold 80 units (100 available - 20 on hand). The cost of goods sold is 10 units at $2 each ($20) plus 70 units at $3 each ($210), totaling $230.

Quan Uses a Periodic Inventory System -If Quan,Inc