A physical count of merchandise inventory on July 30 reveals that there are 180 units on hand. Using the FIFO inventory method,

Question

3 years ago

10

the amount allocated to ending inventory for July is

1 answer:

Nookie1986 [14] · Answer 1 · 2022-04-06T14:17:04+03:00

Answer: $3,708

Explanation:

Using FIFO means that the earlier goods are sold before the later ones so the closing inventory would have the latest goods purchased.

If there are 180 units on hand, the cost would be:

Closing inventory is:

= (54 * 22) + ( (180 - 54) * 20)

= (54 * 22) + ( 126 * 20)

= $3,708