Grays Company has inventory of 18 units at a cost of $6 each on August 1. On August 3, it...
Question:
Grays Company has inventory of 18 units at a cost of $6 each on August 1. On August 3, it purchased 28 units at $12 each. 20 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported in cost of goods sold for the 20 units that were sold?
First-in, First-out Method:
Under First-in, First-out Method of inventory valuation, there is no difference in the value of cost of goods and ending inventory in either periodic inventory method or perpetual inventory method.
Answer and Explanation: 1
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View this answerThe answer is $132
| Cost of Goods Sold | Units | Cost per unit | Amount |
|---|---|---|---|
| Aug 1 - beginning | 18 | $6 | $108 |
| Aug 3 - purchase | 2 | $12 | 24 |
| Total Cost of Goods sold | ... |
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Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
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Chapter 6 / Lesson 11
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Inventory valuation methods are ways that companies place a monetary value on the items they have in their inventory. Discover different inventory valuation methods, including specific identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and weighted average.
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