At the beginning of the current period, Muebles de Pavo Real, a furniture company out of Madrid, Spain, had the following data referring to its inventory at the end of March. They use the FIFO method for costing. They sold 1800 chairs: 300 of type A and 1000 of Type B and 500 of type C. They apply the lower of cost or market to the total inventory. Determine the cost of goods sold. Remember write-downs of inventory are included in the COGS.

Cost/purchases	Type A	Type B	Type C
March 1—Beginning Inventory	200- € 200 each	800 - € 50 each	250 - € 100 each
March 10—purchases	10 - € 205 each	200 - € 45 each	125 - € 102 each
March 15—purchases		100 - € 52 each	250- € 106 each
March 20—purchases	90 - € 210 each		100 - € 110 each
March 25—purchases	150- € 205 each	175 - € 55 each
March 30—purchases	50 - € 207 each	450 - € 50 each

Market for chairs at end of March

Type A	Type B	Type C
€ 202	€ 53	€ 90

Sales:

Type A:                Type B:                 Type C:

190 @ € 340             500 @ € 75              500 @ € 175

100 @ € 360             400 @ € 80

10 @ € 365              100 @ € 90       

Cost using FIFO (10 points)

Type A    

Type B    

Type C                                        Total: 

Value of ending inventory (5 points)

FIFO: 

Market 

Adjustment:                                    Value of ending Inventory: 

Gross Profit Margin: