beginning inventory 10 units @ $10 per unit first purchase 35 units @ $11 per unit first sale 20 units…

beginning inventory 10 units @ $10 per unit first purchase 35 units @ $11 per unit first sale 20 units second purchase 40 units @ $12 per unit second sale 35 units third purchase 15 units @ $13 per unit what is the value of cost of goods sold using a perpetual inventory system with the fifo costing method? $395 $675 $555 $605 none of the above

beginning inventory 10 units @ $10 per unit first purchase 35 units @ $11 per unit first sale 20 units second purchase 40 units @ $12 per unit second sale 35 units third purchase 15 units @ $13 per unit what is the value of cost of goods sold using a perpetual inventory system with the fifo costing method? $395 $675 $555 $605 none of the above

Answer

Explanation:

Step1: Calculate cost of first - sale

First 20 units are sold. 10 units from beginning inventory ($10 per unit) and 10 units from first purchase ($11 per unit). $10\times10 + 10\times11=100 + 110 = 210$

Step2: Calculate cost of second - sale

Second 35 units are sold. 25 units from first purchase ($11 per unit) and 10 units from second purchase ($12 per unit). $25\times11+10\times12 = 275+120=395$

Step3: Calculate total cost of goods sold

Add the cost of first - sale and second - sale. $210 + 395=605$

Answer:

$605$