Klump Co. Klump Co. uses a perpetual inventory system and had the following inve

Question

Klump Co.
Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June.

Refer to the information provided for Klump Co. The company uses the perpetual inventory system. If the company uses FIFO inventory costing method, cost of goods sold for the month of June is:

$2,550.00

$2,540.00

$2,520.00

$2,538.00

June 1 On hand, 50 units at $18.00 each $ 900.00 4 Purchased 115 units at $18.20 each 2,093.00 5                Sold 100 units 10 Purchased 75 units at $18.25 each 1,368.75 24                Sold 50 units Total cost of goods available for sale $4,361.75 30 On hand, 100 units

Explanation / Answer

Calculate cost of goods sold under FIFO perpetual method :

ENding inventory = (75*18.25+25*18.20) = 1823.75

Cost of goods available for sale = 4361.75

Cost of goods sold = 4361.75-1823.75 = 2538

so answer is d) $2538.00

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