Purchases and sales during a recent period for Coleman, Inc. were:

Beginning inventory was 100 units at $1 each.
See information for Coleman, Inc.above. Given this information, what is the ending inventory if the periodic FIFO costing alternative is used?

Question

Purchases and sales during a recent period for Coleman, Inc. were:

Beginning inventory was 100 units at $1 each.
See information for Coleman, Inc.above. Given this information, what is the ending inventory if the periodic FIFO costing alternative is used?

Quizplus · Accepted Answer

Using the periodic FIFO costing method, the cost of goods sold is calculated as (100 x $1) + (200 x $2) + (100 x $3) = $700. 
Therefore, the ending inventory would be the remaining 200 units at a cost of $3 each (the most recent purchase), which comes out to be 200 x $3 = $600. 
Thus, the ending inventory is $600.

Purchases and Sales During a Recent Period for Coleman, Inc