Question

The following units of an inventory item were available for sale during the year:

Beginning inventory	8 units at $51
First purchase	17 units at $54
Second purchase	23 units at $56
Third purchase	18 units at $60

The firm uses the periodic inventory system. During the year, 38 units of the item were sold.

The value of ending inventory using FIFO is

a.$1,312

b.$2,048

c.$2,558

d.$1,640

Answer 1

		Units Sold	Unit	Cost/unit	COGS
Beginning inventory	8 units at $51	8		0	$                  -
First purchase	17 units at $54	17		0	$                  -
Second purchase	23 units at $56	13	10	56	$         560.00
Third purchase	18 units at $60	0	18	60	$     1,080.00
		38	28		$     1,640.00
	Cost of closing Inventory = $1640