compeny canplites 2000l nt u the yeer a a cose of 30s000 the

compeny canplites 200,0l nt u the yeer a a cose of $3,0s0,00, the begning finishned gods inventory was 25,000 units at $310,000. Determine the cost of goods soid for 210,000 units, assuming a FIFO cost flow

Solution

Calculation of cost of Goods sold for 210,000 units as per FIFO Mehtodh Particulars Units Amount Opening Inventory Sold 25000 $           3,10,000 From the production of the during the year 185000 $        27,75,000 (210,000 Units - 25,000 units ) X $ 15 per units Total Cost of Goods Sold 210000 $        30,85,000 Answer = $         30,85,000 Working Notes: Units Cost Per unit Cost Openinng Stock of Fininshed Goods 25000 $           3,10,000 12.4 ($ 310,000 / 25000 units) Completed Finished Goods 200000 $        30,00,000 15 ($ 3,000,000 / 2,00,000 units) Available For Sales units 225000