Boxwood Company sells blankets for $31 each. The following information was taken from the inventory records during May. The company had no beginning inventory on May 1. Boxwood uses a perpetual inventory system. Blankets Cost $15 Date May 3 10 17 20 23 30 Purchase Sale Oa. 1196 Ob. 1122 Oc. 1241 Od. 1134 Purchase Sale Sale Units 11 4 16 8 3 Purchase 12 $21 Determine the cost of goods sold for the sale of May 20 using the FIFO inventory costing method. $17 27

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…