Explain first in first out method formula
by Mike_B
Oct 24, · a. Formula method: Under formula method, the cost of goods sold would be computed as follows: Cost of goods sold = Cost of units in beginning inventory + Cost of units purchased during the period – Cost of units in ending inventory. b. Earliest cost method: Under earliest cost method, we would find the total number of units sold during the period and then . Sal sold sunglasses during this time, out of his stock of Going by the FIFO method, Sal needs to go by the older costs (of acquiring his inventory) first. Sal’s COGS calculation is as follows: x $ = $40, x $ = $57, x $ = $28, COGS Total: $, Sal’s cost of goods sold is $,Estimated Reading Time: 6 mins. Read more