Question

On december 31st wolfson corp had in inventory 450 units of its product, which cost 22$ per unit to produce. During January, the company produced 850 units at a cost of 25$ per unit. Assuming that wolfson corp sold 800 units in January, what was the cost of goods sold? (Assume FIFO inventory accounting)

Answer 1

Answer:
Cost of Goods sold = $18,650/-
Working Notes:
Cost of Goods Sold = Opening Inventory + Purchase - Closing Inventory
Opening Inventory	$    9,900.00
Purchase of inventory	$ 21,250.00
Closing Inventory	$ 12,500.00
Cost of Goods sold =	18,650.00
Particulars	QTY	PRICE	AMOUNT
Beginning inventory	450.00	$         22.00	$        9,900.00
Production	850.00	$         25.00	$     21,250.00
Closing Inventory ( 450+850-800)	500.00	$         25.00	$     12,500.00
Sales	800.00	-	-
Cost of Goods Sold	FIFO
	QTY	COST	AMOUNT
	450.00	22.00	9,900.00
	350.00	25.00	8,750.00
	Total		18,650.00