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Chapter 2: 11BP (page 115)

On December 31 of last year, Wolfson Corporation had in inventory 450 units of its product, which cost \(22 per unit to produce. During January, the company produced 850 units at a cost of \)25 per unit. Assuming that Wolfson Corporation sold 800 units in January, what was the cost of goods sold (assume FIFO inventory accounting)?

Short Answer

Expert verified

The cost of goods sold of the company is $18,650.

Step by step solution

01

Ending inventory in units

Endinginventory=Beginninginventory+Unitsproduced-Salesunits=450+850-800=500

02

Cost of goods sold

Costofgoodssold=Beginningunits脳Unitprice+Unitsproduced脳Unitprice-Endingunits脳Unitprice=450脳$22+850脳$25-500脳$25=$18,650

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