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

Question

Quizplus · Accepted Answer

Under FIFO, the first units purchased are the first to be sold. The company sells 30 units: 15 from the August 1 purchase ($12 each) and 15 from the August 5 purchase ($13 each). The remaining inventory is 5 units from the August 5 purchase ($13 each) and 20 units from the August 12 purchase ($14 each), totaling $210.

A Company Has Inventory of 15 Units at a Cost