widget company started the month with 10 gadgets in its inventory that cost $5 each. during the month…

widget company started the month with 10 gadgets in its inventory that cost $5 each. during the month, widget bought 50 more gadgets that cost $6 each. at the end of the month, widget counted its inventory and found that 8 gadgets remained unsold. if widget uses fifo, its cost of goods sold for the month is \n______.\n\no $40\no $48\no $310\no $302\no $252

widget company started the month with 10 gadgets in its inventory that cost $5 each. during the month, widget bought 50 more gadgets that cost $6 each. at the end of the month, widget counted its inventory and found that 8 gadgets remained unsold. if widget uses fifo, its cost of goods sold for the month is \n______.\n\no $40\no $48\no $310\no $302\no $252

Answer

Explanation:

Step1: Calculate total gadgets available

$10 + 50=60$ (total gadgets available for sale)

Step2: Calculate gadgets sold

$60 - 8 = 52$ (number of gadgets sold)

Step3: Apply FIFO method

Under FIFO, first - in items are sold first. So, we use up the 10 gadgets costing $5 each first, and then the remaining from the 50 gadgets costing $6 each. Cost of 10 gadgets at $5 each: $10\times5 = 50$ Number of gadgets from the $6 - cost$ batch sold: $52 - 10=42$ Cost of 42 gadgets at $6 each: $42\times6 = 252$ Total cost of goods sold: $50+252 = 302$

Answer:

$302$