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Ymorist [56]
3 years ago
12

McCarthy Company has inventory... McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, i

t purchased 20 units at $205 each. 11 units are sold on October 4. Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale
Business
1 answer:
KatRina [158]3 years ago
6 0

Answer:

Ending inventory= $3,485

Explanation:

Giving the following information:

Beginning inventory= 8 units for $200 each

On October 2= purchased 20 units at $205 each.

11 units are sold on October 4.

u<u>nder the FIFO (first-in, first-out) inventory method, the ending inventory is calculated using the cost of the last units incorporated into inventory.</u>

Ending inventory= 17*205= $3,485

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