1. Inventory records for Dunbar Incorporated revealed the following:

DateTransactionNumber of UnitsUnit Cost

Apr. 1Beginning inventory500$2.40

Apr. 20Purchase400$2.50

Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming FIFO would be:

a. $1,730

b. $1,700

c. $1,720

d. $1,710

Question

Business

Triston Mcfarland

25 August, 04:35

1. Inventory records for Dunbar Incorporated revealed the following:

DateTransactionNumber of UnitsUnit Cost

Apr. 1Beginning inventory500$2.40

Apr. 20Purchase400$2.50

Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming FIFO would be:

a. $1,730

b. $1,700

c. $1,720

d. $1,710

+3

Answers (1)

Know the Answer?

Kiara Davis · Answer 1

The correct answer is B.

Explanation:

Giving the following information:

Apr. 1: Beginning inventory = 500 units at $2.40

Apr. 20: Purchase = 400units at $2.50

Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming FIFO (first-in, first-out)

COGS = 500*2.4 + 200*2.5 = $1,700

1. Inventory records for Dunbar Incorporated revealed the following:DateTransactionNumber of UnitsUnit CostApr. 1Beginning inventory500$2.40Apr. 20Purchase400$2.50Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming FIFO would be:a. $1,730b. $1,700c. $1,720d. $1,710