Use this information to answer the following question. $\begin{array}{rll}
\text { Jan. } & 1 & \text { Inventory } \
& 8 & \text { Purchase } \
&17 & \text { Purchase } \
&25 & \text { Purchase } \
&& \text { Total sales }
\end{array}
\begin{array}{l}
15 \text { units@\$4.00 } \
60 \text { units } @ \$ 4.40 \
30 \text { units } @ \$ 4.20 \
45 \text { units } @ \$ 4.80\
100 \text { units }
\end{array}$
A periodic inventory system is used.
Cost of goods sold under FIFO is

Question

Use this information to answer the following question. $\begin{array}{rll}
\text { Jan. } & 1 & \text { Inventory } \
& 8 & \text { Purchase } \
&17 & \text { Purchase } \
&25 & \text { Purchase } \
&& \text { Total sales }
\end{array}
\begin{array}{l}
15 \text { units@\$4.00 } \
60 \text { units } @ \$ 4.40 \
30 \text { units } @ \$ 4.20 \
45 \text { units } @ \$ 4.80\
100 \text { units }
\end{array}$
 A periodic inventory system is used.
Cost of goods sold under FIFO is

Quizplus · Accepted Answer

Under FIFO, the first items purchased are the first to be sold. The cost of goods sold is calculated as: (15 units @ $4.00) + (60 units @ $4.40) + (25 units @ $4.20) = $429.

Use This Information to Answer the Following Question A Periodic Inventory System Is Used