The Boxwood Company sells blankets for $ 31.00 each. The following was taken fro
ID: 2600461 • Letter: T
Question
The Boxwood Company sells blankets for $ 31.00 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method.
Select the correct answer.
$151.00
$114.00
$117.00
$199.00
Date Product Z Units Cost May 01 Balance 7 $16.00 May 10 Sale 5 May 17 Balance 13 $17.00 May 20 Sale 7 May 23 Sale 2 May 30 Balance 12 $19.00Explanation / Answer
Calculate cost of goods sold :
2
13
16
17
32
221
2
5
16
17
32
85
6
12
17
19
102
228
so answer is c) $117
Date qty purchase unit cost purchase cost qty sold unit cost cost of goods sold inventory on hand unit cost ending inventory beginning inventory 7 16 112 May 10 5 16 80 2 16 32 May 17 13 17 2212
13
16
17
32
221
May 202
5
16
17
32
85
8 17 136 may 23 2 17 34 6 17 102 May 30 12 19 2286
12
17
19
102
228
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