If the ABC Company has three lots of products for sale, purchase 1 (earliest) for $20, purchase 2 (middle) for $15 and purchase 3 (latest) for $25, which cost would be assumed to be sold first using FIFO costing

Results are below.

Explanation:

Giving the following information:

Purchase 1 (earliest) for $20

Purchase 2 (middle) for $15

Purchase 3 (latest) for $25

The FIFO (first-in, first-out) method, allocates costs to the cost of goods sold using the purchase price of the firsts units incorporated into inventory. On the contrary, the ending inventory cost is calculated with the costs of the lasts units incorporated.

Assume that the company sells the number of units equivalent to the first lot. Then, the cost of goods sold will be $20; and the ending inventory $40 (15+25).

answer; erp systems;

answer; whoever is willing and able to pay the price;