Assume Nile.com began April with 14 units of inventory that cost a total of $266. During April, Nile purchased and sold goods as follows:
|
Apr |
8 |
Purchase |
42 units @ $20 |
|
14 |
Sale |
35 units @ $40 |
|
|
22 |
Purchase |
28 units @ $22 |
|
|
27 |
Sale |
42 units @ $40 |
|
Under the FIFO inventory method, how much is Nile’s cost of goods sold for the sale on April 14?
a. $1,106
b. $686
c. $1,400
d. $700