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madison outlet has the following inventory transactions for the year: date transaction numbers of units unit cost total cost january 1 beginning inventory 10 $200 $2,000 march 14 purchase 15 300 4,500 $6,500 january 1 to december 31 total sales to customers 12 what amount would madison report for cost of goods sold using fifo?
madison outlet has the following inventory transactions for the year: date transaction numbers of units unit cost total cost january 1 beginning inventory 10 $200 $2,000 march 14 purchase 15 300 4,500 $6,500 january 1 to december 31 total sales to customers 12 what amount would madison report for cost of goods sold using fifo?
Thecost of goods soldfor Madison outlet using theFIFOinventory method is $2,600.What is the cost of goods sold?FIFOis an abbreviation for first in, first out.FIFOis aninventorymethod that postulates that the firstinventoryto be bought is the first to be sold. This means that when a unit ofinventoryis sold, it is assumed that it is sold from theinventorypurchased at the earliest. The endinginventoryis made up of inventory that was purchased latest.Otherinventory methodsare last in, first out (LIFO) and the average inventory method.Using theFIFOinventory method, the 12 sales to customers would be taken from the beginninginventoryand theinventorypurchased on March 14.Cost of goods sold= $2000 + (2 x $300)$2000 + $600 = $2,600To learn more aboutFIFO, please check:brainly.com/question/294129#SPJ1...