Question

The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Delacour, Inc. for an operating period.

	Units	Unit Cost	Total Cost	Units Sold
Beginning Inventory	30	$28	$ 840
Sale No. 1				20
Purchase No. 1	50	40	2,000
Sale No. 2				40
Purchase No. 2	20	44	880	__
Totals	100		$3,720	60

Assuming Delacour, Inc. uses FIFO periodic inventory procedures, the ending inventory cost is:

Select one:

A. $1,240

B. $1,680

C. $1,120

D. $1,760

Answer 1

Ans.	Option B $1,680
	*CALCULATIONS:
	Ending inventory units = Units available for sale - Total units sold
	100 - 60
	40 units
	*In FIFO method the units that have purchased first, are released the first one and the ending inventory
	units remain from the last purchases.
	FIFO Periodic :
	Date	Units	Rate	Total
	Purchase no. 2	20	$44.00	$880
	Purchase no. 1	20	$40.00	$800
	Ending inventory	40		$1,680