Use the information below to answer the following questions.
The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

-Assuming that the company uses the perpetual inventory system, determine the May 31 inventory balance using the FIFO inventory cost method.
A) $364
B) $372
C) $324
D) $320

Question

Use the information below to answer the following questions.
The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
  ​
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-Assuming that the company uses the perpetual inventory system, determine the May 31 inventory balance using the FIFO inventory cost method.  
A) $364 
B) $372 
C) $324 
D) $320

Quizplus · Accepted Answer

The cost of ending inventory for the month of May using FIFO = 3 units at $24 from the May 17 purchase + 10 units at $30 from the May 30 purchase = $72 + $300 = $372

Use the Information Below to Answer the Following Questions