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The Laurel Corporation starts the year with a beginning inventory of 360 units at $11 per unit. The company purchases 530 units at $16 each in February and 320 units at $12 each in October. Laurel sells 180 units during the year. Laurel has a periodic inventory system and uses the FIFO inventory costing method. What is the amount of cost of goods sold?

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Answer:

Cost of goods sold= $1,980

Explanation:

Giving the following information:

beginning inventory of 360 units at $11 per unit

February= purchases 530 units at $16 each

October= 320 units at $12 each

Laurel sells 180 units during the year.

The cost of goods sold is calculated using the purchase price of the firsts units incorporated.

Cost of goods sold= 180*11= $1,980