Question

Glasgow Enterprises started the period with 60 units in beginning inventory that cost $2.20 each. During the period, the company purchased inventory items as follows. Glasgow sold 290 units after purchase 3 for $10.40 each.

Purchase	No. of Items			Cost
1		270		$	2.70
2		185		$	2.80
3		55		$	3.20

Glasgow's cost of goods sold under FIFO would be:

Multiple Choice

$638.

$834.

$928.

Glasgow Enterprises started the period with 60 units in beginning inventory that cost $2.20 each. During the period, the company purchased inventory items as follows. Glasgow sold 290 units after purchase 3 for $10.40 each. Purchase No. of Items Cost $2.70 $2.80 $3.20 270 2 185 Glasgow's cost of goods sold under FIFO would be: Multiple Choice $638. $928 $753

Answer 1

Fifo - units purchased first are sold first

Cost of Goods Sold = (60*2.20)+(230*2.70)

= 132 + 621

= 753

Option D is the answer