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Inventory records for Marvin Company revealed the following:
Date Transaction Number of Units Unit Cost
Mar. 1 Beginning inventory 900 $7.14
Mar. 10 Purchase 560 7.57
Mar. 16 Purchase 790 8.02
Mar. 23 Purchase 510 8.42
Marvin sold 1,900 units of inventory during the month. Cost of goods sold assuming FIFO would be:__________.
(Do not round your intermediate calculations. Round your answer to the nearest dollar amount)
A. $15,998.
B. $14,194.
C. $14,844.
D. $15,155.

Respuesta :

Answer:

B. $14,194.

Explanation:

FIFO means first in, first out. It means that the goods purchased first are the first to be sold.

The 1900 units or inventories sold would be taken from :

1. The beginning inventory = 900 x $7.14 = $6,426

2. Mar. 10 Purchase = 560 x $7.57 = $4,239.20

3. The remaining 440 units of inventory sold would be taken from the Mar. 16 Purchase  = 440 x $8.02 = $3,528.80

Total = $14,194

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