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jones Corporation had a beginning inventory of 300 units which it bought for $5 each. Jones bought 500 more units at $4 each on February 1st and 200 units more for $6 each on February 5th. On February 8th Jones sold 150 units. What is Jones' cost of goods sold under the FIFO method

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Calculation of cost of goods sold under FIFO method:

                                units        Rate       Total

Opening inventory  300         $5          $1500

Purchases                500         $4          $2000

Purchases                200         $6          $1200

Sales                        150         $5          $750

The cost of goods sold is $750

What is FIFO?

FIFO is also known as First In First Out method, it is used to calculate the movement of inventory, the first unit is sold first and on.

Therefore the units available in the beginning inventory is sold first and the units sold is only 150 units while the inventory is 300 units so all the units sold are calculated at a rate of $5.

Learn more about Inventory at https://brainly.com/question/27176867

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