Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
$\begin{array} { | l | c | c | c | }
\hline & \text { Quantity } & \text { Unit Cost (\$) } & \text { Total Cost (\$) } \
\hline \text { Beginning inventory (1 Jan) } & 16 & 10 & 160 \
\hline \text { Purchases (11 Jan.) } & 14 & 12 & 168 \
\hline \text { Purchase (20 Jan.) } & 23 & 15 & \underline { 345 } \
\hline \text { Total } & 53 & & 673 \
\hline
\end{array}$
On 14 January, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at 31 January.

-Assuming that Beech Soda uses the FIFO flow assumption, the cost of goods sold to be recorded at 14 January is:

Question

Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
$\begin{array} { | l | c | c | c | } 
\hline & \text { Quantity } & \text { Unit Cost (\$) } & \text { Total Cost (\$) } \
\hline \text { Beginning inventory (1 Jan) } & 16 & 10 & 160 \
\hline \text { Purchases (11 Jan.) } & 14 & 12 & 168 \
\hline \text { Purchase (20 Jan.) } & 23 & 15 & \underline { 345 } \
\hline \text { Total } & 53 & & 673 \
\hline
\end{array}$
On 14 January, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at 31 January.

-Assuming that Beech Soda uses the FIFO flow assumption, the cost of goods sold to be recorded at 14 January is:

Quizplus · Accepted Answer

Under FIFO, the oldest inventory costs are used first. The cost of goods sold for 25 units would be 16 units at $10 each and 9 units at $12 each, totaling $268.

Beech Soda, Inc On 14 January, Beech Soda, Inc