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beginning inventory consists of 4 items at $10 each. during the month, the company purchased 3 items for $11 each and it sold 3 items. using first-in, first-out, cost of goods sold equals . multiple choice question. $31 (rounded to the nearest dollar) an indeterminable amount given the specific items sold was not identified $33 $31.50 $30

Respuesta :

The correct option is $30. So the cost of goods sold using the FIFO method is $30

Beginning inventory:

Number of items: 4 items

Cost of each item = $10 per unit

Purchased inventory:

Number of items purchased = 3 items

Cost of each item = $11 per unit

Now, the 3 items were sold using the first-in,first-out method, so the items will be sold from the beginning inventory. In the FIFO method the items which are purchased earlier are sold first, following the items purchased after that:

Computing the cost of goods sold:

COGS = 3*10 = $30

So, the cost of goods sold is $30

Learn more about cost of goods sold:

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