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22 June, 09:24

Aiello, Inc. had the following inventory in fiscal 2016. The company uses the FIFO method of accounting for inventory. Beginning Inventory, January 1, 2016: 130 units @ $15.00 Purchase 200 units @ $18.00 Purchase 50 units @ $13.50 Purchase 110 units @ $15.75 Ending Inventory, December 31, 2016: 120 units The company's cost of goods sold for fiscal 2016 is:

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  1. 22 June, 12:35
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    COGS = $6090

    Explanation:

    Giving the following information:

    Beginning Inventory, January 1, 2016: 130 units at $15.00

    Purchase 200 units at $18.00

    Purchase 50 units at $13.50

    Purchase 110 units at $15.75

    Ending Inventory, December 31, 2016: 120 units

    We need to calculate the cost of goods sold.

    First, we determine the number of units sold:

    Units sold = beginning inventory + purchases - ending inventory

    Units sold = 130 + 360 - 120 = 370 units

    Now, we can calculate the COGS

    Inventory method: FIFO (First-in, first-out).

    COGS = 130*$15 + 200*$18 + 40*13.5 = $6090
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Home » Business » Aiello, Inc. had the following inventory in fiscal 2016. The company uses the FIFO method of accounting for inventory. Beginning Inventory, January 1, 2016: 130 units @ $15.00 Purchase 200 units @ $18.00 Purchase 50 units @ $13.
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