Vargas Company uses the perpetual inventory method. Vargas purchased 800 units of inventory that cost $9.00 each. At a later date the company purchased an additional 1,200 units of inventory that cost $10.00 each. Vargas sold 900 units of inventory for $13.00. If Vargas uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:

$8200

Explanation:

FIFO means first in first out. It means that it is the first purchased inventory that is the first to be sold.

The cost of the 900 units sold, would be:

800 x 9 = $7200

100 × $10 = $1000

Total = $8200

I hope my answer helps you

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explanation:

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