How much product cost would be allocated to cost of goods


Question - A company starts the new year with no inventory. During the year, it purchased two identical inventory items. The inventory was purchased at different times. The first purchase cost $2400 and the other, $3000. One of the items was sold during the year. Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory on the year in financial statements, assuming use of FIFO?

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Accounting Basics: How much product cost would be allocated to cost of goods
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