Question
We purchased 300 pairs of Jordans at the beginning of the year for $100 per pair. During the year we sold 500 pairs for $300 each. We later ordered 300 more pairs at $110 each. Answer the following questions using this format $xx,xxx.00. What is our Cost of Goods sold using the FIFO method?
Answer
$97,000.00
- Cost of Goods Sold = Cost of first items sold + Cost of later items sold
- Cost of first items sold = 300 * $100 = $30,000.00
- Cost of later items sold = 200 * $100 + 300 * $110 = $67,000.00