An organic cheese company uses the FIFO method of valuing inventory. As of May 31, the company had sold 160 wheels of organic cheese. Use the FIFO method to find the cost of the 160 wheels sold.
Date Units Received Unit Cost Total Cost
5/01 100 $9.65 $965
5/08 65 9.75 633.75
5/19 145 9.90 1,435.50

Question

An organic cheese company uses the FIFO method of valuing inventory. As of May 31, the company had sold 160 wheels of organic cheese. Use the FIFO method to find the cost of the 160 wheels sold. 
Date     Units Received    Unit Cost   Total Cost 
5/01         100                $9.65           $965
5/08          65                 9.75            633.75
5/19          145               9.90        1,435.50

anonymous · Answer

Sorry if I misunderstood your problem, but if you mean "first-in-first-out" method isn't it simply:

(100*9.65)+60*(9.75)

anonymous · Answer

yes it is

anonymous · Answer

Its correct, but how did you get that?

anonymous · Answer

Aah. Okey, so FIFO means you sell first organic cheese you bought first.

So you sell 160 cheese.
In this case, you bought 5/01, 100 cheese with unit price of 9.65 dollars. You sell all of those first. 
Then you need to sell 160-100 = 60 more, and you bought 65 cheese  5/08, so you sell 60 of those. You get: 60 cheese with unit price 9.75.

anonymous · Answer

Oh its first in first out so that means I start from top.

anonymous · Answer

Exactly.

anonymous · Answer

Got it. Thanks!

anonymous · Answer

No problem, have a nice day.