Papeteries Lorvel measures its reams of paper using first-in, first-out (FIFO). For March 20X1: opening inventory of 2,000 units reams at a unit cost of 4; purchase of 3,000 units reams at a unit cost of 5; sales of 3,500 units reams. Calculate the cost of sales for the month and the cost of closing inventory.
- Opening inventory (reams)
- 2,000
- Unit cost of opening inventory
- 4
- Quantity purchased (reams)
- 3,000
- Unit cost of the purchase
- 5
- Quantity sold (reams)
- 3,500