# Calculate the cost of goods sold dollar value for A65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

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FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 10, Problem 8EA
Textbook Problem
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## Calculate the cost of goods sold dollar value for A65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).

To determine

Concept introduction:

FIFO method:

Under this method, the units purchased initially are expected to be sold first andaccordingly theCOGS is calculated. The ending inventory includes the latest units purchased.

To calculate:

The cost of goods sold using FIFO perpetual method.

### Explanation of Solution

The cost of goods sold using FIFOperpetual method is calculated as follows:

Units sold: 400

Cost of goods sold = 400 units × \$50 =

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