Step-by-step explanation:
FIFO means "first in - first out". so, it is airways the oldest in the inventory that is sold. that means the newest or youngest items in the inventory remain.
the end inventory shows 70 units.
that means, all the November units (64) plus 6 of June are still there.
a.
the cost of the ending inventory is
576 + 6×8 = 576 + 48 = $624
b.
the cost of goods sold is then
1727 - 624 = $1,103
control :
196 + 483 + (59-6)×8 = 679 + 53×8 = 679 + 424 =
= $1,103
correct.
