Question

ABC Company just started business in August. They made the following purchases during August: August 01 300 units $1,560 total cost August 12 400 units 2,340 total cost August 24 400 units 2,520 total cost August 30 300 units 1,980 total cost A physical count on August 31 reveals that there are 500 units on hand. What is the value of ending inventory, using a FIFO?

Answer 1

Answer:

Inventory= $3,240

Explanation:

Giving the following information:

They made the following purchases during August:

August 01: 300 units $1,560 total cost

August 12: 400 units 2,340 total cost

August 24: 400 units 2,520 total cost (2520/400= $6.3)

August 30: 300 units 1,980 total cost (1980/300= $6.6)

A physical count on August 31 reveals that there are 500 units on hand.

FIFO (first-in, first-out)

Inventory= 300*6.6 + 200*6.3= $3,240