Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7.50 each.During the period,the company purchased inventory items as follows:
Glasgow sold 220 units after purchase 3 for $17.00 each.
-What is Glasgow's cost of goods sold under FIFO?
A)$1,650
B)$1,860
C)$2,310
D)$2,100

Question

Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7.50 each.During the period,the company purchased inventory items as follows:
  Glasgow sold 220 units after purchase 3 for $17.00 each.
-What is Glasgow's cost of goods sold under FIFO?
A)$1,650 
B)$1,860 
C)$2,310 
D)$2,100

Quizplus · Accepted Answer

The first-in,first-out (FIFO)cost flow method requires that the cost of the items purchased first be assigned to cost of goods sold.
Cost of goods sold = (80 × $7.50)+ (140 × $9.00)= $1,860

Glasgow Enterprises Started the Period with 80 Units in Beginning