标题: LIFO FIFO question [打印本页]

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作者: edgeon    时间: 2011-7-11 17:40     标题: LIFO FIFO question

this might be a silly question, but to me i dont get why they used $7 and not $6. if we use $7 isnt that LIFO??


The Mountain Bike Supply Company had 500 units in its beginning inventory. Each of these units cost $5. During the period, Mountain Bike Supply first purchased 400 units at $6 each and then 200 units at $7 each. At the end of the period, Mountain Bike Supply had 600 units. What is the cost of goods sold and inventory for Mountain Bike Supply if it uses FIFO inventory valuation?

COGS Inventory


A) $2,500 $3,800

B) $2,500 $3,100

C) $3,200 $3,100

Under FIFO: COGS = 500 @ $5 = $2,500
Inventory = 200 @ $7 + 400 @ $6 = $3,800

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