a company sells 100 units in june. calculate the cost of goods sold using first - in, first - out.\n\n| |…

a company sells 100 units in june. calculate the cost of goods sold using first - in, first - out.\n\n| | units received | unit cost |\n|--|--|--|\n| june 4 | 60 | $2.20 |\n| june 11 | 20 | $2.90 |\n| june 18 | 40 | $2.30 |\n| june 25 | 60 | $2.20 |\n\n$? per unit\n\nround to the nearest cent.

a company sells 100 units in june. calculate the cost of goods sold using first - in, first - out.\n\n| | units received | unit cost |\n|--|--|--|\n| june 4 | 60 | $2.20 |\n| june 11 | 20 | $2.90 |\n| june 18 | 40 | $2.30 |\n| june 25 | 60 | $2.20 |\n\n$? per unit\n\nround to the nearest cent.

Answer

Explanation:

Step1: Use up units from earliest - received

First, use the 60 units received on June 4. Cost for these units is $60\times2.20 = 132$. Remaining units to account for: $100 - 60=40$.

Step2: Use next - earliest units

Next, use 20 units received on June 11. Cost for these units is $20\times2.90 = 58$. Remaining units to account for: $40 - 20 = 20$.

Step3: Use more units

Then, use 20 units from the June 18 batch. Cost for these units is $20\times2.30=46$.

Step4: Calculate total cost of goods sold

Total cost of goods sold is $132 + 58+46=236$.

Answer:

$236.00$