Skeleton Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 25,000 units at $310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.
Answer:
$3,085,000 = $310,000 + (185,000 × $15.00)*
* Cost per unit of goods produced during the year = $15.00 = $3,000,000 ÷ 200,000 units