Vincent Company uses the perpetual inventory method. Vincent purchased 400 units of inventory that cost $5.00 each. At a later date the company purchased an additional 800 units of inventory that cost $6.00 each. Vincent sold 500 units of inventory for $9.00. If Vincent uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:

Question

Quizplus · Accepted Answer

(400 x $5.00) + (100 x $6.00) = $2,600 cost of goods sold

Vincent Company Uses the Perpetual Inventory Method