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Question - On January 1, 2011 a company has 3,000 units @ $30/unit in beginning inventory. On January 3rd, the company bought 2,000 units at $40/unit. On January 4th the company bought 1,000 more units at $33/unit. On January 10th, the company sells 4,000 units for $50 each.
Using the FIFO method of inventory costing, what is the Cost of Goods Sold?
a. $130,000
b. $143,000
c. $73,000
d. $60,000
Support your response.Indicate a disadvantage to implementing ABC for this scenario. Support your response.
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