Use this inventory information for the month of July to answer the following question.
-Assuming that a periodic inventory system is used,what is cost of goods sold on a FIFO basis?
A)$7,696
B)$7,736
C)$3,664
D)$3,704

Question

Use this inventory information for the month of July to answer the following question.  
-Assuming that a periodic inventory system is used,what is cost of goods sold on a FIFO basis?
A)$7,696 
B)$7,736 
C)$3,664 
D)$3,704

Quizplus · Accepted Answer

In a FIFO (First-In, First-Out) inventory system, the oldest inventory costs are used up first when calculating the cost of goods sold. The correct cost of goods sold would be calculated based on the oldest inventory prices, which results in $7,696.

Use This Inventory Information for the Month of July to Answer