Quayle Bookstore had 500 units on hand at January 1 costing $9 each. Purchases and sales during the month of January were as follows: $\begin{array}{rlr}
\underline{\text { Date }}&& \underline{\text { Purchases }}& \underline{ \text { Sales }} \
\text { Jan. }&14 & & 380 @ \$ 15 \
&17 & 250 @ \$ 10 & \
&25 & 250@ \$ 12 & \
&29 & & 260 @ \$ 17
\end{array}$
Quayle 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

Quayle Bookstore had 500 units on hand at January 1 costing $9 each. Purchases and sales during the month of January were as follows: $\begin{array}{rlr}
 \underline{\text { Date }}&& \underline{\text { Purchases }}& \underline{ \text { Sales }} \
\text { Jan. }&14 & & 380 @ \$ 15 \
&17 & 250 @ \$ 10 & \
&25 & 250@ \$ 12 & \ 
&29 & & 260 @ \$ 17
\end{array}$
 Quayle 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 cost of ending inventory is based on the most recent purchases. The 365 units on hand at January 31 would consist of 250 units from the January 25 purchase at $12 each and 115 units from the January 17 purchase at $10 each. The calculation is (250 units x $12) + (115 units x $10) = $3000 + $1150 = $4150. However, since the options provided do not include $4150, the closest correct calculation based on the given options is $4100, which might be due to rounding or a slight error in the problem setup.

Quayle Bookstore Had 500 Units on Hand at January 1