Blue Jay Inc.reported the following transactions for the month of March:? $$\begin{array} { r l l }
1 & \text { Beginning inventory } & 15 \text { units at } \$ 6 \text { each } \
5 & \text { Purchase } & 29 \text { units at } \$ 9 \text { each } \
13 & \text { Purchase } & 25 \text { units at } \$ 12 \text { each } \
20 & \text { Purchase } & 15 \text { units at } \$ 14 \text { each } \
31 & \text { Ending inventory } & 30 \text { units }
\end{array}$$ Calculate the cost of ending inventory using the FIFO method.
A) $420
B) $390
C) $216
D) $510

Question

Blue Jay Inc.reported the following transactions for the month of March:? $$\begin{array} { r l l } 
1 & \text { Beginning inventory } & 15 \text { units at } \$ 6 \text { each } \
5 & \text { Purchase } & 29 \text { units at } \$ 9 \text { each } \
13 & \text { Purchase } & 25 \text { units at } \$ 12 \text { each } \
20 & \text { Purchase } & 15 \text { units at } \$ 14 \text { each } \
31 & \text { Ending inventory } & 30 \text { units }
\end{array}$$ Calculate the cost of ending inventory using the FIFO method.
A) $420
B) $390
C) $216
D) $510

Quizplus · Accepted Answer

Under the FIFO (First-In, First-Out) method, the oldest inventory costs are assigned to the cost of goods sold first, leaving the newest inventory costs to calculate the ending inventory. The ending inventory consists of 30 units, which under FIFO would be the most recent purchases. We calculate as follows:- The last 15 units from the purchase on the 20th at $14 each = 15 units * $14 = $210- The remaining 15 units needed come from the purchase on the 13th at $12 each = 15 units * $12 = $180Adding these together gives us the cost of the ending inventory: $210 + $180 = $390.

Blue Jay Inc Calculate the Cost of Ending Inventory Using the FIFO Method