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16 May, 06:17

Inventory records for Marvin Company revealed the following:

Date Transaction Number

of Units Unit

Cost

Mar. 1 Beginning inventory 990 $7.25

Mar. 10 Purchase 570 7.73

Mar. 16 Purchase 710 8.20

Mar. 23 Purchase 520 8.60

Marvin sold 1,900 units of inventory during the month. Cost of goods sold assuming FIFO would be

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Answers (1)
  1. 16 May, 08:04
    0
    Answer: $14371.6

    Explanation:

    Given that,

    According to FIFO method,

    Marvin sold = 1,900 units of inventory during the month

    Cost of Beginning inventory = 990 * $7.25

    = $7177.5

    on Mar. 10

    Cost of Purchase = 570 * $7.73

    = $4,406.1

    Remaining purchases = Total units sold - Beginning inventory - number of units purchase on mar 10

    = 1,900 - 990 - 570

    = 340 units

    Cost of remaining purchases = 340 units * $8.2

    = $2,788

    Total cost of goods sold = Cost of Beginning inventory + Cost of Purchase + Cost of remaining purchases

    = $7177.5 + $4,406.1 + $2,788

    = $14371.6
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