In: Accounting
Maxell Company uses the FIFO method to assign costs to inventory
and cost of goods sold. The company uses a periodic inventory
system. Consider the following information:
Date | Description | # of units | Cost per unit | ||
January 1 | Beginning inventory | 160 | $ | 6 | |
June 2 | Purchase | 90 | $ | 5 | |
November 5 | Sales | 170 | |||
What amounts would be reported as the cost of goods sold and ending
inventory balances for the year?
Multiple Choice
a. Cost of goods sold $1,070; Ending inventory $440
b. Cost of goods sold $1,020; Ending inventory $140
c. Cost of goods sold $1,010; Ending inventory $400
d. Cost of goods sold $930; Ending inventory $480