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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 $19.00

Explanation / 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 17 221

2

13

16

17

32

221

May 20

2

5

16

17

32

85

8 17 136 may 23 2 17 34 6 17 102 May 30 12 19 228

6

12

17

19

102

228

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