Question

Biscuit Bakery had the following activity in its inventory account during August 20X3.                            &nbsp

Biscuit Bakery had the following activity in its inventory account during August 20X3.

                                                                                                                        Cost per

Date                      Activity                                               Units              Unit Cost            Total

August 1            Beginning inventory                          100                    $3.00               $300

August 3            Purchase                                                   40                       3.10                124

August 7            Sale                                                             50

August 12          Purchase                                                   50                       3.20                 160

August 16          Sale                                                             70

August 23          Sale                                                             40

August 30          Purchase                                                   60                       3.30                 198

What is the ending inventory balance at August 31, 20X3, for Biscuit Bakery if the company uses perpetual FIFO as its inventory valuation method?

A) $198.00

B) $270.00

C) $294.00

D) $297.50

E) $358.00

Note: Please show math for answer.

Homework Answers

Answer #1

Purchases

Cost of goods sold

Ending inventory

Date

Units

Unit cost

Total cost

Units

Unit cost

Total cost

Units

Unit cost

Total cost

Aug. 1

100 3 300

Aug. 3

40 3.10 124 100 3 300
40 3.10 124
Aug. 7 50 3 150 50 3 150
40 3.10 124
Aug. 12 50 3.20 160 50 3 150
40 3.10 124
50 3.20 160

Aug. 16

50 3 150 20 3.10 62
20 3.10 62 50 3.20 160
Aug. 23 20 3.10 62
20 3.20 64 30 3.20 96
Aug. 30 60 3.30 198 30 3.20 96
60 3.30 198
Total 294

·

· Ending inventory = $294

Correct option is (C)

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