Question

Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning inventory 470 $ 2.37 Apr. 20 Purchase 410 2.72 Dunbar sold 580 units of inventory during the month. Ending inventory assuming FIFO would be:

Answer 1

Answer:

Ending inventory= $816

Explanation:

Giving the following information:

Apr. 1 Beginning inventory 470 $2.37

Apr. 20 Purchase 410 $2.72

Dunbar sold 580 units of inventory during the month.

To calculate the ending inventory under the FIFO (first-in, first-out) method, we need to use the cost of the last units incorporated into inventory.

Units in ending inventory= 880 - 580= 300

Ending inventory= 300*2.72= $816