A firm has beginning inventory of 450 units at a cost of $10 each. Production during the period was 500 units at $12 each. If sales were 700 units, what is the cost of goods sold (assume FIFO)?
A) $7,500
B) $8,000
C) $7,900
D) $8,100

Question

Quizplus · Accepted Answer

Old inventory (450 units at $10) $ 4,500
Plus new production (500 units at $12) $ 6,000
Available $10,500
Less ending inventory (250 units at $12) $ 3,000
Cost of goods sold $ 7,500

A Firm Has Beginning Inventory of 450 Units at a Cost