Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: $\begin{array}{lll}
\underline{\text { Date}}&\underline{\text { Purchases }}&\underline{\text { Sales}}\
\text { Jan. } 14 & & 375 @ \$ 14 \
\quad\quad17 & 250 @ \$ 10& \
\quad\quad25 & 250 @ \$ 11& \
\quad\quad29 & &260 @ \$ 16
\end{array}$

Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is:

Question

Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: $\begin{array}{lll}
\underline{\text { Date}}&\underline{\text {  Purchases }}&\underline{\text { Sales}}\
\text { Jan. } 14 & & 375 @ \$ 14 \
\quad\quad17 &   250 @ \$ 10& \
\quad\quad25 & 250 @ \$ 11& \
\quad\quad29 & &260 @ \$ 16 
\end{array}$

Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is:

Quizplus · Accepted Answer

Under FIFO, the oldest costs are assigned to the cost of goods sold first. The ending inventory consists of the most recent purchases. After selling 635 units (375 + 260), 365 units remain. These 365 units are from the most recent purchases: 250 units at $11 and 115 units at $10, totaling $3,900.

Partridge Bookstore Had 500 Units on Hand at January 1