During July the following purchases and sales were made by Phast Company. There was no beginning inventory. Phast Company uses a perpetual inventory system. $@$16\begin{array} { r r r r } & \text { Purchases } && \text { Sales } \\\text { July } 3 & 40 \text { units }@\$ 14 & \text { July } 13 & 50 \text { units } \\11 & 40 \text { units } @ \$ 15 & 22 & 20 \text { units } \\20 & 20 \text { units } @\$ 16 & &\end{array}$ Under the FIFO method the cost of goods sold for each sale is: $\begin{array} { l r r } & { \text { July 13 } } & \text { July 22 } \\\end{array}$
A) $$700$280\begin{array} { l r r } & \$ 700 && \$ 280 \\\end{array}$
B) $710300\begin{array} { l r r } & 710 &&& 300 \\\end{array}$
C) $750300\begin{array} { l r r } & 750 &&& 300 \\\end{array}$
D) $800320\begin{array} { l r r } & 800 &&& 320\end{array}$

Question

During July the following purchases and sales were made by Phast Company. There was no beginning inventory. Phast Company uses a perpetual inventory system.

@$16\begin{array} { r r r r } & \text { Purchases } && \text { Sales } \\\text { July } 3 & 40 \text { units }@\$ 14 & \text { July } 13 & 50 \text { units } \\11 & 40 \text { units } @ \$ 15 & 22 & 20 \text { units } \\20 & 20 \text { units } @\$ 16 & &\end{array}

Under the FIFO method the cost of goods sold for each sale is:

\begin{array} { l r r } & { \text { July 13 } } & \text { July 22 } \\\end{array}

A)

$700$280\begin{array} { l r r } & \$ 700 && \$ 280 \\\end{array}

B)

710300\begin{array} { l r r } & 710 &&& 300 \\\end{array}

C)

750300\begin{array} { l r r } & 750 &&& 300 \\\end{array}

D)

800320\begin{array} { l r r } & 800 &&& 320\end{array}

Miriam Arriaga · Accepted Answer

Final Answer : B

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