Date Transaction Units Cost of each item

7/1 Beginning Inventory 100 $2
7/10 Purchase 100 $3
7/11 SOLD 100?
7/12 Purchase 100 $4
7/13 SOLD 100?

Assume that the company uses a FIFO cost flow assumption. What is the cost of goods sold for July?

You're using FIFO (First In First out) - So, look at the first SOLD data you have on 7/11. You sold a 100 units and since you're using FIFO, you use the oldest inventory you have. In this case, it would be your beginning inventory at $2.

The second sale you made was for a 100 units on the 13th. At that point your oldest inventory cost you $3 bucks a piece.

So your cost of goods sold is 100 units @ $2 + 100 units @ $3 = $500