A corporation uses a FIFO perpetual inventory system. August 2, 25 units were purchased at $12 per unit.
August 5, 10 units were purchased at $13 per unit.
August 15, 12 units were sold at $25 per unit.
August 18, 15 units were purchased at $14 per unit.
What was the amount of the ending inventory for the month of August?
A)$496.00
B)$486.00
C)$492.57
D)$300.00
E)$510.00

Question

Quizplus · Accepted Answer

The ending inventory is 20 units (10 units from the August 5 purchase and 10 units from the August 18 purchase). The cost of the ending inventory is $496.00 (10 units x $13 per unit + 10 units x $14 per unit).

A Corporation Uses a FIFO Perpetual Inventory System