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

Question

Business

Guest

31 October, 16:08

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

+2

Answers (1)

Know the Answer?

Lydia · Answer 1

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