Question

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):• 41 units at $92• 74 units at $72• 170 units at $55Sales for the year totaled 271 units, leaving 14 units on hand at the end of the year.Ending inventory using the FIFO method is:

Answer 1

Answer:

Inventory= $770

Explanation:

Giving the following information:

Purchases:

• 41 units at $92

• 74 units at $72

• 170 units at $55

Sales for the year totaled 271 units, leaving 14 units on hand at the end of the year.

We need to use FIFO (first in, first out) inventory method:

Inventory= 14 units* $55= $770