Homework SourseTrumpeting Trumpets has the following inventory data Assumin
Trumpeting Trumpets has the following inventory data:
Assuming that a periodic inventory system is used, what is the cost of goods sold on a FIFO basis?
$11,022
$23,088
$10,992
$23,118
| July 1: Beginning inventory | 30 units at $120 |
| July 5: Purchases | 180 units at $112 |
| July 14: Sale | 120 units |
| July 21: Purchases | 90 units at $115 |
| July 30: Sale | 84 units |
Solution
Available Units = 30 + 180 + 90 = 300 units
Sold Units = 120 + 84 = 204 units
Ending Inventory = 300 - 204 = 96 units
COGS = 90 units at the rate 115 + (204-90) units at rate 112
=> 90 * 115 + 114 * 112
=> 23,118
Hence the correct answer is Option D
