Question

Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning inventory 480 $ 2.46 Apr. 20 Purchase 360 2.71 Dunbar sold 580 units of inventory during the month. Ending inventory assuming FIFO would be:

Answer 1

Answer:

Ending inventory= $964.6

Explanation:

First, we need to calculate the number of units in ending inventory:

Units in ending inventory= total units - units sold

Units in ending inventory= 840 - 580

Units in ending inventory= 260

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

Ending inventory= 260*3.71

Ending inventory= $964.6