Vargas Company uses the perpetual inventory method. Vargas purchased 600 units of inventory that cost $7.00 each. At a later date the company purchased an additional 1,000 units of inventory that cost $8.00 each. Vargas sold 700 units of inventory for $11.00. If Vargas uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:

Respuesta :

Answer:

COGS= 5000

Explanation:

under the fifo method first come firs out

600*7   =  4200

100*8    =  800

Total Cost (4200+800) = 5000