Grays Company has inventory of 23 units at a cost of 11 each

Grays Company has inventory of 23 units at a cost of $11 each on August 1. On August 3, it purchased 33 units at $9 each. 25 units are sold on August 6. Using the FIFCO perpetual inventory method, what amount will be reported as cost of goods sold for the 25 units that were sold? Multiple Choice $271 $277 O $575 $275 $44

Solution

Option \"a\" is correct.

Inventory: 23 units * $11 = $253

For extra 2 units (25-23): 2 units * $9 = $18

Cost of Goods sold = 253 + 18

= $271 is the answer.