Moroni Industries has the following inventory information. $\begin{array}{rll}
\text { July }1 & \text { Beginning Inventory } & 40 \text { units at } \$ 120 \
5 & \text { Purchases } & 240 \text { units at } \$ 112 \
14 & \text { Sale } & 160 \text { units } \
21 & \text { Purchases } & 120 \text { units at } \$ 115 \
30 & \text { Sale } & 140 \text { units }
\end{array}$ Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) assumes that the first units purchased are the first units sold. Therefore, the ending inventory consists of the most recent purchases. The ending inventory is calculated as follows:120 units at $115 = $13,80020 units at $112 = $2,240Total ending inventory = $16,040

Moroni Industries Has the Following Inventory Information Assuming That a Periodic Inventory System Is Used, What Is