Question

The AC me corporation buys 300 units of merchandise in January at five dollars each in February they seem he buys 500 units at four dollars each and then March he buys $200 at six dollars each a semi sales 150 units during this quarter what is the cost of good sold under the FIFO method

Answer 1

Ans.	Periodic FIFO:
	Date	Units	Rate	Total
	jan	150	$5.00	$750
	Cost of goods sold	150		$750
	*In FIFO method the units that have purchased first, are released the first one and the ending inventory
	units remain from the last purchases.
	*The first purchase of AC me corporation was 300 units @ 5 dollars.
	*In FIFO method, the 150 units will be sold from the first purchase at $5.