Question

Question 13 Pina Colada Corp. has the following inventory data: July 1 Beginning inventory 108 units at $19 $2052 7 Purchases 378 units at $20 7560 22 Purchases 54 units at $22 1188 $10800 A physical count of merchandise inventory on July 30 reveals that there are 180 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for July is $3960. $3492. $3600. $3708.

Answer 1

Answer:

Endign inventory cost= $3,708

Explanation:

Giving the following information:

Purchases 378 units at $20

Purchases 54 units at $22

Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the cost of the lasts units incorporated into inventory:

Ending inventory in units= 180

Endign inventory cost= 54*22 + 126*20

Endign inventory cost= $3,708