Answer:
Cost of goods sold = $8,830
Explanation:
Under the FIFO system , inventories are priced using the price of the oldest batch in the stock, after which the price of the next oldest batch and this is done in turn. It is based on the principle that the first batch that arrives the store should be issued first.
Using the FIFO method of the perpetual inventory, the 1,150 units sold by Anton Co will be priced as follows:
760 units at a price of $7 = 760× $7= $5,320
390units at a price of $9 =390 × $9 = $3,510
Cost of goods sold = $5,320+ $3,510
= $8,830
Answer:
Cost of goods sold = $8,830
Explanation:
Under the FIFO system , the principle used is that the first batch that arrives the store should be issued first.
Using the FIFO method of the perpetual inventory, the 1,150 units sold by Anton Co will be priced as follows:
760 units at a price of $7 = 760× $7= $5,320
Out of the 870 units of the second batch 390 will be used i.e 1150-760 = 390
390units at a price of $9 =390 × $9 = $3,510
Cost of goods sold = $5,320+ $3,510
= $8,830
