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BARSIC [14]
3 years ago
6

A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $28,000. Early in the year, 10,

000 units were purchased at $9 each. Using FIFO, what is the value of the ending inventory of 3,000 units?
Business
1 answer:
natulia [17]3 years ago
7 0

Answer:

Ending inventory= $27,000

Explanation:

Giving the following information:

A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $28,000. Early in the year, 10,000 units were purchased at $9 each.

First, we need to calculate the unitary value of the beginning inventory:

Beginning inventory= 28,000/4,000= $7 per unit

FIFO (first-in, first-out)

The last units that are left have a value of $9 each.

Ending inventory= 3,000*9= $27,000

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