Answer:
Wildhorse Co.
Using the FIFO inventory method, the amount allocated to ending inventory for July is:______.
c. $3502.
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Total Cost
July 1 Beginning inventory 102 $19 $1,938
July 7 Purchases 357 $20 7,140
July 22 Purchases 51 $22 1,122
July 30 Total available for sale 510 $10,200
July 30 Ending inventory 170
July 30 Units sold 340
Value of Ending inventory using FIFO:
Date Description Units Unit Cost Total Cost
July 7 Purchases 119 $20 $2,380
July 22 Purchases 51 $22 1,122
Total value of ending inventory 170 $3,502
Cost of goods sold using FIFO:
Cost of goods available for sale = $10,200
Less Ending inventory 3,502
Cost of goods sold $6,698
