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Cost of Goods Sold and FIFO Inventory for Wolfson Corporation

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On December 31 of last year, Wolfson Corporation had in inventory 400 units of its product, which cost $21 per unit to produce. During January, the company produced 800 units at a cost of $24 per unit. Assuming that Wolfson Corporation sold 700 units in January, what was the cost of goods sold (assume FIFO inventory accounting)?

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Solution Summary

This solution provides step-by-step calculations for the purchase and sale transactions and ending inventory.

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Under FIFO inventpry accounting, the units which enter fiorst leave the store first.
We have the following inventory
Dec 31 400 units @$21 = ...

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