Lauer Corporation has provided the following information about one of its laptop computers: During the year,Lauer sold 750 laptop computers.
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What was ending inventory using the FIFO cost flow assumption?
A)$60,000.
B)$55,000.
C)$45,000.
D)$40,000.

Question

Lauer Corporation has provided the following information about one of its laptop computers:  During the year,Lauer sold 750 laptop computers.
-
What was ending inventory using the FIFO cost flow assumption?
A)$60,000. 
B)$55,000. 
C)$45,000. 
D)$40,000.

Quizplus · Accepted Answer

Ending inventory using the FIFO cost flow assumption assumes that the earliest inventory items purchased are the first ones sold, and the ending inventory consists of the most recent purchases. Since Lauer sold 750 laptop computers, the remaining ending inventory would be the last purchase(s) made. Using the information given, the cost of one laptop computer is unknown, so it is impossible to calculate the exact ending inventory. However, we can eliminate choices A, C, and D as they are numbers that are not even multiples of 750 (the number of computers sold). Thus, the only remaining option is B.

Lauer Corporation Has Provided the Following Information About One of Its