A company has inventory of 15 units at a cost of $12 each on August 1-.docx
A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, they purchased 10 units at $13 per unit. On August 12, they purchased 20 units at $14 per unit. On August 15, they sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory on August 15 after the sale? Solution Using the FIFO perpetual inventory method, what is the value of the ending inventory on August 15 after the sale? August 1, 15 units at a cost of $12 each August 5, purchased 10 units at $13 August 12, purchased 20 units at $14 August 15, sold 30 units Ending inventory 15 units Under FIFO, the oldest units are assumed to be sold first, so the ending 15 units left unsold must have come from the newest units, so 15 units x $14 = $210. .
A company has inventory of 15 units at a cost of $12 each on August 1-.docx
A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, they purchased 10 units at $13 per unit. On August 12, they purchased 20 units at $14 per unit. On August 15, they sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory on August 15 after the sale? Solution Using the FIFO perpetual inventory method, what is the value of the ending inventory on August 15 after the sale? August 1, 15 units at a cost of $12 each August 5, purchased 10 units at $13 August 12, purchased 20 units at $14 August 15, sold 30 units Ending inventory 15 units Under FIFO, the oldest units are assumed to be sold first, so the ending 15 units left unsold must have come from the newest units, so 15 units x $14 = $210. .
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A company has inventory of 15 units at a cost of $12 each on August 1-.docx
- 1. A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, they purchased 10 units at $13 per unit. On August 12, they purchased 20 units at $14 per unit. On August 15, they sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory on August 15 after the sale? a. $140 b $160 c. $210 d. $380 e. $590 Solution Using the FIFO perpetual inventory method, what is the value of the ending inventory on August 15 after the sale? August 1, 15 units at a cost of $12 each August 5, purchased 10 units at $13 August 12, purchased 20 units at $14 August 15, sold 30 units Ending inventory 15 units Under FIFO, the oldest units are assumed to be sold first, so the ending 15 units left unsold must have come from the newest units, so 15 units x $14 = $210.