Use the following data of Dolphin Sales Inc Unit Total Units

Use the following data of Dolphin Sales, Inc.. Unit Total Units Units 12 40 16 40 Cost Cost Sold Beginning inventory Purchase on Apr 25 Purchase on Nov 16 Sales Dolphin Sales uses a FIFO inventory system. Cost of goods sold for the period is $ 6 $ 72 7 280 144 2 () A. $292. OB. $268. ??. $360. D. $312.

Solution

B is the correct option

Reason

First in, first out (FIFO) is an asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first and may be used by a individual or a corporation. Thus, here first 12 and the next 24 will be sold first. Thus, the total cost will be 12x6+28x7=72+196=268