138. Pappy's Staff has the following inventory information. $\begin{array}{rll} \text { July }1 & \text { Beginning Inventory } & 20 \text { units at } \$ 90 \ 5 & \text { Purchases } & 120 \text { units at } \$ 92 \ 14 & \text { Sale } & 80 \text { units } \ 21 & \text { Purchases } & 60 \text { units at } \$ 95 \ 30 & \text { Sale } & 56 \text { units } \end{array}$ Assuming that a perpetual inventory system is used, what is the ending inventory on a FIFO basis?

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Quizplus · Accepted Answer

Under FIFO, the oldest inventory costs are used first. After the sales, the remaining inventory consists of 4 units from the July 5 purchase and all 60 units from the July 21 purchase, totaling 64 units. The ending inventory is (4 units x $92) + (60 units x $95) = $6,068.

138 Assuming That a Perpetual Inventory System Is Used, What Is