The Laurel Corporation starts the year with a beginning inventory of 600 units at $5 per unit. The company purchases 1,000 units at $4 each in February and 400 units at $6 each in October. Laurel sells 300 units during the year. Laurel has a periodic inventory system and uses the FIFO inventory costing method. What is the amount of cost of goods sold?
Manufacturers have three types of inventory, which include raw materials, work in process, and finished goods, whereas merchandisers have only raw materials inventory.
|True OR False
Goods placed in inventory are initially recorded at market value.
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