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Question
Vinnie has a small retail store and sells one product. His beginning inventory consisted of 1,000 products at $4 each for a total of $4,000. During the year, Vinnie made the following purchases of the product:March 1 5,000 products at $5 each = $25,000
August 1 1,000 products at $6 each = $6,000
?Vinnie uses the FIFO method of inventory valuation and he sells 5,000 products during the current year.
a. Calculate the total cost of goods available for sale.
b. Calculate the cost of the ending inventory.
c. Calculate the cost of goods sold.
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