Lightbulbs Etc. uses the FIFO method to find the cost of goods sold and the value of the ending inventory. The table records the number of units received in the month of June. On June 30th, they sold 128 energy-saving bulbs. What was the cost of goods sold?
Week of: Units Received: Unit Cost: Total Cost:
June 1 65 $2.11 $137.15
June 8 12 $2.31 $27.72
June 15 108 $1.98 $213.84

(sorry I can't take screenshots on this computer)

Question

Lightbulbs Etc. uses the FIFO method to find the cost of goods sold and the value of the ending inventory. The table records the number of units received in the month of June. On June 30th, they sold 128 energy-saving bulbs. What was the cost of goods sold?
Week of:   Units Received:   Unit Cost:   Total Cost:
June 1           65                     $2.11       $137.15
June 8           12                      $2.31       $27.72
June 15           108                  $1.98         $213.84

(sorry I can't take screenshots on this computer)

anonymous · Answer

I got $265.85

But last time I took an accounting course was a year ago, but I think if I remember correctly to calculate cost of goods sold with FIFO (First in First Out) you get rid of the materials you bought first. So since they sold 128 bulbs, that means that all 65 of the bulbs in June 1st were sold, all the bulbs on June 8 were sold. and 128 - (65+12) = 51 so that means 51 bulbs in June 15 were sold.

So I did 51 * $1.98 = $100.98

So $137.15 + $27.72 + $100.98 = $265.85

anonymous · Answer

Yes, I actually already had the answer since I take online courses. I just wasn't sure of how to do the work. Thank you.