Use this information to answer the following question. $\begin{array}{llll}
\text { Feb. } & 1 & \text { Inventory } & 200 \text { units @ } \$ 6.00 \
& 6 & \text { Purchase } & 300 \text { units } @ \$ 6.60\
&13 & \text { Purchase } & 100 \text { units } @ \$ 7.20 \
&20 & \text { Purchase } & 200 \text { units } @ \$ 7.80 \
&25 & \text { Purchase } & 40 \text { units @ } \$ 8.40 \
&&\text { Total sales }& 620 \text { units }
\end{array}$

A periodic inventory system is used.
Using FIFO,the cost assigned to ending inventory is

Question

Use this information to answer the following question. $\begin{array}{llll}
\text { Feb. } & 1 & \text { Inventory } & 200 \text { units @ } \$ 6.00 \
& 6 & \text { Purchase } & 300 \text { units } @ \$ 6.60\
&13 & \text { Purchase } & 100 \text { units } @ \$ 7.20 \
&20 & \text { Purchase } & 200 \text { units } @ \$ 7.80 \
&25 & \text { Purchase } & 40 \text { units @ } \$ 8.40 \
&&\text { Total sales }& 620 \text { units }
\end{array}$

A periodic inventory system is used.
Using FIFO,the cost assigned to ending inventory is

Quizplus · Accepted Answer

In a periodic inventory system using FIFO, the cost assigned to ending inventory is based on the assumption that the first items purchased are the first items sold. Therefore, the cost of ending inventory is based on the cost of the most recent items purchased. In this case, the cost of the most recent purchase (30 units at $58 each) is used to calculate the cost of ending inventory, which is $1,740.

Use This Information to Answer the Following Question A Periodic Inventory System Is Used