P. Didee has the following inventory information. $$\begin{array} { r l l }
\text { July } 1 & \text { Beginning Inventory } & 20 \text { units at } \$ 90 \
5 & \text { Purchases } & 120 \text { units at } \$ 92 \
14 & \text { Sale } & 90 \text { units } \
21 & \text { Purchases } & 60 \text { units at } \$ 95 \
30 & \text { Sale } & 58 \text { units }
\end{array}$$ Assuming that a perpetual inventory system is used what is the ending inventory on a FIFO basis?
A) $4744
B) $5860
C) $4940
D) $6346

Question

P. Didee has the following inventory information. $$\begin{array} { r l l } 
\text { July } 1 & \text { Beginning Inventory } & 20 \text { units at } \$ 90 \
5 & \text { Purchases } & 120 \text { units at } \$ 92 \
14 & \text { Sale } & 90 \text { units } \
21 & \text { Purchases } & 60 \text { units at } \$ 95 \
30 & \text { Sale } & 58 \text { units }
\end{array}$$ Assuming that a perpetual inventory system is used what is the ending inventory on a FIFO basis?
A) $4744
B) $5860
C) $4940
D) $6346

Quizplus · Accepted Answer

Under FIFO, the oldest inventory costs are used first. After the sales, the remaining inventory consists of 30 units from the July 5 purchase at $92 and 60 units from the July 21 purchase at $95, totaling $5860.

P Didee Has the Following Inventory Information Assuming That a Perpetual Inventory System Is Used What Is