Curl Company completed 500,000 units during the year at a cost of $24,000,000. The beginning finished goods inventory was 50,000 units at $1,600,000. Determine the cost of goods sold for 525,000 units, assuming a FIFO cost flow.
Answer:
$24,400,000 = $1,600,000 + (475,000 × $48.00)*
* Cost per unit of goods produced during the year = $48.00 = $24,000,000 ÷ 500,000 units